Will UP Come Out On Top Post-Lockdown?

Besides taking significant steps to attract investors to Uttar Pradesh, the UP government has also shown initiative to tackle the Coronavirus head-on. Both the steps have put the state on a path to emerge as India’s top-tier state.
Complete Coverage: Coronavirus

Crux of the Matter

Labour Law Changes
Uttar Pradesh government has suspended most of its labour laws for 3 years to attract investment from home and abroad. The move would reportedly generate employment for 24 lakh returned migrant labourers, the highest number in India.

Retained Labour Laws
Following laws would be retained by the UP State Govt:

  • Building and other constructions Act: Ensures the safety of workers.
  • Bonded Labour Act: Bonded labour system continues to be illegal.
  • Workmen Compensation Act: Ensures compensation of workers in case of accident or injury.
  • Section 5 of Payment of Wages Act: Ensures that workers receive wages on time.

Suspended Labour Laws
Following are the major laws abolished:

  • Minimum Wages Act: Ensured workers receive at least minimum wages for a fixed period.
  • Maternity Benefit Act: Ensured female workers of complete payment on leave for taking a child’s care.
  • Payment of Bonus Act: Ensured workers receive part of the profit earned by the company.
  • Equal Remuneration Act: Prohibited gender-discrimination in wages.
  • Industrial Disputes Act: Allowed workers to strike in case of a dispute of interests.

Workers Migration
To provide employment on the basis of expertise in fields, UP government recently released a ‘Skill Mapping’. In the mapping, workers are segregated according to their area of work, which would ease the Govt in providing required employment.

State Development
To develop a structure for employment, UP government has been engaging with industries to set up in the state.

Zurich Airport International AG would be developing an airport in Jewar which would be functioning by 2023. It would be India’s largest airport with 6 runways, and would provide employment to around 5 lakh people.

Similarly, the government started its plan of ‘Defence Corridor’ in the state, where defence equipment would be manufactured. It will generate around 2.5 lakh jobs and would create equipment worth $250 billion by 2025 as a part of Make In India initiative.

With the combination of India’s largest labour strength and potential settlement of several industries with the aid of modified labour laws, Uttar Pradesh might become a vibrant hub of industry in India. UP government has already claimed a reversal of labour migration.

If any state wants manpower, the state government will have to guarantee social security and insurance of the workers. Without our permission they will not be able to take our people…because of the way they were treated in some states

Yogi Adityanath, Chief Minister of UP

Controlling The Covid
Besides the attraction of investments to the state, UP has also shown relatively successful curbing of the Coronavirus spread. The control makes the state poised for a spring after the lockdown and the virus spread end.

  • Kushal Pal Singh is an Indian billionaire real estate developer and the chairman and CEO of real estate developer DLF Limited. Singh hails from Bulandshahar, UP and his personal wealth as of May 2020 is estimated at $ 3.5 billion.
  • Agriculture is the leading occupation in Uttar Pradesh and plays a vital role in the economic development of the state. In terms of net state domestic product (NSDP), Uttar Pradesh is the second-largest economy in India with an estimated gross state domestic product of ₹14.89 lakh crore, and hence contributes 8.406% of India.
  • UTTAR PRADESH FINANCIAL CORPORATION was established in 1954 by the Government of Uttar Pradesh to provide support for industrial development in the state of Uttar Pradesh. Since its establishment, Corporation had disbursed loans of ₹3200 crores to about 40,000 industrial units and helped generate 8,21,000 employment opportunities.