26-12-2012, 01:25 PM
Uttarakhand
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INTRODUCTION
Uttarakhand was created out of UP in November 2000 and since then has progressed dramatically in the last decade leaving behind not only its mother state UP but also becoming one of the fastest growing states of India today. The reasons behind this success story are many and are worthy of emulation by other Indian States aspiring growth.
First being a new state, it was small, easier to administer and efficiency of the government improved. It could leave behind the baggage of UP and started making great strides towards development. Also the economic policies while being part of UP (predominantly tilted towards the economy of indo gangetic basin ) was not in alignment with the policy needed for an hilly state. The Congress and the BJP government which took turns to rule the state kept aside narrow-minded politics and focussed on development of the state.
Also being a new state Uttarakhand received support from the central government in terms of opening up to SEZ,Tax holidays for big as well as SMEs. The Industrial policy(2003 )of the state focused on the sectors where Uttarakhand has inherent advantage like Agro and Food Processing, Floriculture, Handloom, Hydropower, Khadi and Village Industries and Tourism. Subsequent to this, Integrated Industrial Development Policy was launched in February 2008.
Favourable government policies and availability of natural resources in the state have led to a 29 % growth in the number of SSI Units in the state vis a vis 22 % in India from 2002-2007. Uttarakhand has developed itself as an industrial hub of north India with three integrated industrial estates (IIEs) at Haridwar, Pantnagar and Sitarganj. A Pharma city at Selequi, an IT Park at Sahastradhara in Dehradun and a growth centre at Siggadi in Kotdwar has also been developed.
To encourage the agri exports from the state four Agri Exports Zones(AEZs) have been developed. The state is one of the biggest producers of cash crops like Litchi, Apple, Plum, Peach etc and premium quality basmati rice.
The state has also exploited its potential in Power sector with hydro electric power projects being its flagship energy venture. Power Generation capacity has increased from 1115 MW in 2000-01 to 3618 MW in 2011-12. In addition, work on projects of 3493 MW is in progress.
This growth of the state has also led to the growth of the education and healthcare sector and overall welfare of the citizens of the state .Literacy percentage has improved to 79.6 % from 71.6% . (2000-01 to 2011-12).In the field of Higher Education 7 State Universities, 6 Private Universities, 4 Deemed Universities (apart from 1 IIT, 1 NIT, and 1 IIM) have been established. In the field of Medical Education 2 Medical Colleges have been established. 3 Medical Colleges and 5 Nursing Colleges are also being set up.
Roadways are generally known has precursor to a growing economy. As the region is hilly and railways are difficult to implement the government has created about 10000 km of roadways after the creation of the state to facilitate the economy of the state.
All these factors have contributed to the growth of the state in thepast decade.
When the state became free from UP ,its GDP was 1.4 times that of UP. However now it has become more than twice that of UP in the last one decade. The real GSDP grew around 9% (average) during FY2004‐FY2012 period. This clearly illustrates that with a focussed vision even the seemingly impossible have been achieved by this young state within only 12 years of its existence.
Economic policy of Uttarakhand
Uttarakhand has developed itself as an industrial hub of north India. The state has
successfully developed three integrated industrial estates (IIEs) at Haridwar,
Pantnagar and Sitarganj. A Pharma city at Selequi, an IT Park at Sahastradhara in
Dehradun and a growth centre at Siggadi in Kotdwar has also been developed. The
contribution of industry sector in the GSDP has gone up from 22% during FY2000‐
01 to 37% during FY2008‐09.
Industry
The Industrial policy of the state was announced in 2003. The policy focuses on the
sectors where Uttarakhand has inherent advantage like Agro and Food Processing,
Floriculture, Handloom, Hydropower, Khadi and Village Industries and Tourism.
Subsequent to this, Integrated Industrial Development Policy was launched in
February 2008. This policy aimed to accelerate industrial development in the
industrially backward and remote hill districts of Uttarakhand. The policy focuses
to develop industrial infrastructure, to encourage entrepreneurial development
through market encouragement and to provide financial support to entrepreneurs.
In order to promote Industrial development in the State, State Infrastructure &
Industrial Development Corporation of Uttarakhand Ltd (SIDCUL) was
incorporated. SIDCUL provides financial assistance in the form of debt, equity and
venture capital to facilitate the development of infrastructure in the state. It also
provides assistance to private initiative in Industry and Infrastructure. SIDCUL
facilitates implementation and management of projects.
Major financial incentives provided by the state government are as follows
• 100 % income tax exemption for first five years and 30% for next five years
for the companies and 25% for others.
• 100% central excise exemption for ten years on items other than those
mentioned in the negative list in the concessional industrial package
announced by the Central Government.
• Exemption from entry tax on Plant & Machinery for setting up industry or
undertaking substantial expansion and modernization.
• Capital investment subsidy @ 15%, subject to a maximum of Rs. 30 Lakhs.
Unemployment – The state government has generated good employment
opportunities in the state. The unemployment rate in Uttarakhand was 4.9% (2009‐
10) which is better than the national average of 9.4%. It is ranked 4th in terms of
unemployment at all India level. To generate employment, the government has
opened 24 employment exchanges in the state. The total number of unemployed
persons registered in the live register as on 31 March 2010 in Uttarakhand was
484972.
Health :
There is a strong need to improve the per capita expenditure on health in
Uttarakhand, the per capita health expenditure of Uttarakhand is almost 2/3 of the
national average9. However the infant mortality rate of Uttarakhand is better as
compared to the national average. Among the high focus EAG states, Uttarakhand
has the lowest IMR.