Government of Uttar Pradesh Planning Department Draft Annual Plan 1973-74

Abstract

These investments, though much larger than during the earlier plans are still inadequate to make up for the leeway of the past. In regard to the private sector, out of an investment of over Rs.9,000 crores made during the first three Five-Year Plans, the share of U. P. was only to the tune of seven per cent. This was utterly inadequate to create new jobs to meet the large scale unemployment during the Fourth Plan. Savings of the people constitute an important source of investment. But on account of low levels of incomes which do not provide even the basic minimum needs to 63 per cent of the population in rural areas and to 45 per cent of the residents of urban areas, the rate of savings in the State is naturally low. Even so, whatever savings are mobilised in U. P. are not fully utilised within the State. According to die position prevailing in 1969, out of the total deposits in the scheduled banks, only 44.5 per cent was invested within the State, the corresponding percentage for India as a whole being 72.2. During the same year, while die State contributed 8.3 per cent of the total deposits in the country, its share in bank credit was only 5.1 per cent. This situation has lately shown some improvement, the proportion of deposits in scheduled banks available for investment within the State is expected to be 51 in 1970 as against 44.5 in 1969. A poor State like U. P. can ill-afford the diversion of saving of the people within the State to other States for investment. There is an urgent need for reorienting the policies of commercial banks so that the savings of the State are made available for investment within the State itself.