Uttar Pradesh's Priority Sector Jump

• 16 Jan 2024

Why in News?

According to the State Focus Paper 2024-25 for UP, prepared by the National Bank for Agriculture and Rural Development (NABARD), credit flow into UP’s priority sectors is estimated to touch Rs 5.73 trillion in 2024-25.

• Agriculture, Micro, Small and Medium Enterprises (MSME), and services sector are identified as priority sectors by the government.

Key Points

• To achieve the USD1-trillion economy target, the state would need a growth rate of 250% in agriculture, 300% in MSME, and 450% in services sectors.
  • Underscoring the importance of credit as the catalyst for growth, the UP government has nudged bankers to improve the state’s credit deposit (CD) ratio.
  • A state delegation is participating in the World Economic Forum (WEF) at Davos, Switzerland to showcase UP as a leading investment destination.
  • The state is also promoting startups for job creation.The Associated Chambers of Commerce & Industry of India (ASSOCHAM) of UP partnered with Bharat Startup & Innovation Society (BSIS), a charitable society that works on nurturing and mentoring the next generation of entrepreneurs.
• The Chief General Manager of NABARD, UP, has referred to the state as the "growth engine" of India, with an estimated growth rate of 19.2%.
  • In terms of ease of doing business, the state has moved to the 2^nd position from 14^th in 2017.
• The State Focus Paper aggregates the credit potential at the ground level for all the 75 districts.
  • Based on the paper, the annual credit plan for 2024-25 will be finalised by the state level bankers’ committee (SLBC) in UP.
• The state is taking steps to boost farm exports by improving the harvest quality.
• UP accounts for 20% of total millet production of India, but the exports were only 1%.

The World Economic Forum (WEF)

• It is a Swiss nonprofit foundation established in 1971, based in Geneva, Switzerland.
• Recognized by the Swiss authorities as the international institution for public-private cooperation.
• Committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.

National Bank for Agriculture and Rural Development (NABARD)

• NABARD is a development bank focussing primarily on the rural sector of the country. It is the apex banking institution to provide finance for Agriculture and rural development.
  • Its headquarter is located in Mumbai, the country’s financial capital.
• It is responsible for the development of the small industries, cottage industries, and any other such village or rural projects.
• It is a statutory body established in 1982 under the Parliamentary act-National Bank for Agriculture and Rural Development Act, 1981.