Uttar Pradesh

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It has everything to shake up the veiled historian within you. However, the state’s marketing strategy so far has been limited to just cashing in on the Taj fame. But, it’s time now to break out the old shell and realise its true potential, feels pallavi srivastava...

Strike a conversation about Uttar Pradesh (UP) and the first thing you hear is Wah Taj! And well, you don’t even require a doctorate degree in ancient Indian history to find out that Shahjahan built this wonder of the world in memory of his beloved wife Mumtaz Mahal. But you do need it when it comes to a lesser popular belief that Taj Mahal was also a display of love of the great architect Ustad Isha Khan (who was the designer of this masterpiece) for Shahjahan’s daughter Jahan Aara. Now, does that shake-up the veiled historian within you? If yes, UP may interest you as a tourist, as it has many such never-told-before stories to unveil!

Already at the top in terms of tourist inflow (117,500,000 in 2007), this vivacious state has everything to entice one’s mood. From the famous Banaras ghats to Bhuddhist Stupas of Sarnath, and from a glimpse of pure nawabi culture in Lucknow to the fascinating Holi of Brij; the state with its rich history and vivid culture can leave you asking for more. In fact, the state earned Rs.95.85 billion, almost 10% of its total revenues for 2007, through tourism. However, till date a major chunk of these revenues keep coming from those who limit their UP excursions only to the Taj Mahal. The reason is simple. The state’s marketing strategy so far has been limited to cashing in on the Taj fame. So, it shouldn’t surprise you if you meet foreign tourists going gung ho on the Taj Mahal, but are clueless about the rest of UP.

However, recently the government has taken some initiatives to market other prominent tourists spots as well. For instance, it plans to spend Rs.17 billion for the development of a Buddhist Circuit at Kushinagar, which includes an international airport. Moreover, the tourism department has a blueprint of a tourism development policy ready, with its focus on developing the Buddhist Circuit, Bundelkhand Circuit, Water Cruise Circuit, Jain Shrines Circuit; and an Eco-Tourism Circuit in the state. But, a lack of district-wise data, aged publicity material and concentrated marketing efforts are few issues that hinder UP’s huge tourism potential. “We need a professional marketing campaign. The state should pull out of accommodation & should pay attention to connectivity. For instance, how do you explain that the capital of this state is not connected to Agra by a proper fast day train or even air?” asks Prateek Hira, CEO, Tornos Tours.

On the other hand, the investment scenario in the state has improved a lot over the past few years. Changes introduced include: stability of tenure for the state’s bureaucrats, improved perception of law and order, reduced cost of doing business, single window clearance, and reforms in public procurement to enhance transparency and competition, et al. “We are committed to greater involvement of the private sector in government policies. Public-private partnerships are being worked out in sectors such as transport where government support is needed. We will merely reduce stakes in such enterprises while protecting the service conditions of existing employees,” avers V. N. Garg, Principal Secretary, Industrial Development, Uttar Pradesh.

Certainly, public private partnership investments have begun to flow-in into the state. A total of Rs.1,311 billion have come into the state during the last one year. This includes Rs.300 billion for the Ganga Expressway, Rs.40 billion for the Taj International Airport and Rs.250 billion for power generation projects, which will add 3,300 MW of electricity generation, thereby making the business environment more conducive. Other initiatives by the state include setting up of a mechanism for third party evaluation of performance, setting up of e-tendering & e-procurement systems, computerisation of land records and web enabled single able systems for SMEs et al to lure investors. Moreover, looking at the inherent potential in the food processing industry, the government has also introduced a Food Processing Industrial Policy. The major objectives of the policy are to minimise wastage of agriculture & horticulture produce, and provide a ‘market’ focus to the entire range of activities involved in the food processing industry. The state government is also planning to provide an interest free loan of Rs.50 million to facilitate working capital in the industry.

On account of FDI inflows though, the state’s performance is not very impressive. Between April 2000 and March 2008 only 58 FDI proposals, worth $73 million were approved for UP. However, the domestic private investments in the state have been pouring in and have touched the figure of Rs.116.63 billion. But these still seem to be concentrated only in Noida, Ghaziabad, Kanpur and Meerut. The government, perhaps, needs to figure out new investment belts to realise the true potential of the state.

In short, the investment scenario may have improved over the year, however, much more marketing efforts are required to boost tourism throughout the state. Else, one would just continue to say ‘Wah Taj!’

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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