Uttarakhand’s economy is mainly driven by agriculture and tourism. With the drastic effect of the quarantine caused by the pandemic affecting all sectors for two years, the state’s economy also took a hit.
While in the period 2018-2019 Uttarakhand reported a gross state domestic product (GSDP) growth of 7.64 per cent, the state recorded a growth of 7.14 per cent in 2019-20, says data from the Ministry of Statistics and Program Implementation.
Now the Himalayan state has hired McKinsey, a global management consultancy, with the aim of doubling its GDSP in the next five years. It has set a target of boosting the economy from ₹2.73 lakh crore to ₹5.5 lakh crore, which will be achieved by reporting a compound annual growth rate (CAGR) of 15% by 2027.
Bringing in new investments and reforms
As part of the Shashakt Uttarakhand mission, the government signed a two-year contract with McKinsey. Founded by accountant James McKinsey and business theorist Marvin Bower in 1926, the company has worked with more than 750 clients so far, the most famous of which are Google, Amazon and Microsoft.
The primary focus of the company’s work according to the government of Uttarakhand will be in areas such as agriculture, infra projects, service sector, horticulture, urban (Brownfield and greenfield cities) and social sectors). This will help the state to monitor the state’s income, as well as its citizens, more quickly.
In the first six months, the company will shortlist sectors that need improvement with the help of new investments and reforms. Secretary (Planning) R. Meenakshi Sundaram, in a report in The Hindu, said, “It will also bring reputed companies to invest in the identified areas in the remaining one-and-a-half year. The agency will invest in increasing the yield of crops and products and improving their quality.” He added that McKinsey will also work on building an export market for products manufactured in the country.
“Realization of the Prime Minister’s Dream”
Chief Minister Pushkar Singh Dhami said, “Prime Minister Narender Modi said that the third decade of this century will be the decade of Uttarakhand. To realize his dreams, we have given the company a target of doubling Uttarakhand’s GDP in five years.”
The Prime Minister said this in October this year while attending an event in Mani – the state’s last village – to lay the foundation stone for projects worth over Rs 3,400 crore in Uttarakhand.
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