Uttarakhand Ropes In Global Consultancy Firm McKinsey To Help Double States Economy By 2027

Image Credits: Unsplash (Representational), McKinsey & Company, Wikipedia

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Uttarakhand Ropes In Global Consultancy Firm McKinsey To Help Double State's Economy By 2027

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 the target of boosting the economy from Rs 2.73 lakh crore to Rs 5.5 lakh crore.

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Uttarakhand's economy is largely driven by agriculture and tourism. With the drastic impact of a pandemic-induced lockdown that affected every sector for two years, the state's economy has taken a hit too.

While in 2018-19, Uttarakhand reported a 7.64 per cent growth in Gross State Domestic Product (GSDP), the state recorded a 7.14 per cent increase in 2019-20, says data by the Ministry of Statistics and Programme 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 the target of boosting the economy from ₹2.73 lakh crore to ₹5.5 lakh crore, which will be done by reporting a Compound Annual Growth Rate (CAGR) of 15% by 2027.

Bringing New Investments & Reforms

Under the Shashakt Uttarakhand mission, the government has signed a two-year agreement with McKinsey. Founded by accountant James McKinsey and business theorist Marvin Bower in 1926, the company has worked with over 750 clients so far, most notable being Google, Amazon and Microsoft among others.

The primary focus of the company's work towards Uttarakhand government will be in areas like agriculture, infra projects, service sector, horticulture, Urban (Brownfield and greenfield cities), and social sectors). This will aid the state in fast-tracking the income of the state as well as its people.

In the first six months, the company will shortlist sectors which need progress with the help of new investments and reforms. Secretary (Planning) R. Meenakshi Sundaram, in a report by The Hindu, said, "It will also bring renowned companies to invest in the identified areas in the remaining year and a half. The agency will invest in increasing the yield of crops and products and improving their quality." He added that McKinsey shall also work to build an export market for the products manufactured in the state.

'Making PM's Dream Come True'

Chief Minister Pushkar Singh Dhami has stated, "PM Narender Modi has said that the third decade of this century will be the decade of Uttarakhand. To make his dreams come true, we have given the firm a target of doubling the GDP of Uttarakhand in five years."

The Prime Minister made the statement in October this year while attending an event in Mana – the state's last village – to lay the foundation stone of projects worth more than ₹3,400 crores in Uttarakhand.

Also Read: IIT Mandi Develops Visual-Based Method To Evaluate Earthquake-Prone Structures In Himalayan Region


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