India’s former Chief Economic Adviser (CEA) Krishnamurthy Subramanian sees Uttar Pradesh (UP) as a potential hub of global defence exports.
Subramanian, who has been appointed as the Executive Director for India by the International Monetary Fund (IMF), said UP could capture a major portion of the global defence exports pie through the US and European markets.
Interestingly, the UP Defence Manufacturing Corridor is fast taking shape with land acquisition on track in the six nodes and a number of private companies already on board to set up their units.
On Saturday, he gave a presentation to the top echelons of the UP bureaucracy, including the chief secretary, regarding the state vision to become a $trillion economy by 2027.
The 51-year-old former CEA, who is also a Professor at the premier Indian School of Business (ISB), underlined the contribution of the manufacturing sector in any economic development spectrum. He said UP has already emerged as a major leather, toys and textile exports hub.
“India is fast progressing as a digital economy…UP should set the target of becoming the data storage and processing hub of the world. The new industrial policy should accord primacy to the digital economy and enterprises related to digital startups,” he suggested.
Noting that each enterprise should be treated as a startup and offered hassle-free business environment, he offered an array of recommendations and suggestions to the Yogi Adityanath government for speedier economic development, employment generation and industrial growth.
Citing noted French economist Olivier Jean Blanchard, he quoted that “if the interest rate paid by the government is less than the growth rate, then the inter-temporal budget constraint facing the government no longer binds.”
He underlined the interest subsidy assistance of startups by the state government would promote innovation and technology. The state’s economy could gain speed by giving special focus to the IT, tourism, MSME, agriculture, education, food processing etc sectors.
Meanwhile, UP chief secretary Durga Shankar Mishra said the state has identified 10 key sectors for composite development. Each sector has dedicated short term and long term action plans, which are being continually monitored.
He enumerated the various flagship projects of the state government including expressways, airports, waterways etc and the various measures being taken to achieve the $trillion goal.