Export UP

EXPORT SCENARIO OF UTTAR PRADESH
Dissertation Submitted to the ALAGAPPA UNIVERSITY in partial

Fulfillment of the requirements for the award of the Degree of
MASTER OF PHILOSOPHY
IN
INTERNATIONAL BUSINESS
Submitted by
PARNIL VERMA
(Enrolment No. 046090008)
Research Guide
Dr. A. K SETH
Reader
Dept. of Commerce
Delhi University, New Delhi
DIRECTORATE OF DISTANCE EDUCATION
ALAGAPPA UNIVERSITY
KARAIKUDI – 630003
JUNE 2005
ACKNOWLEDGEMENTS
I express my most sincere gratitude to my guide Mr. A.K Seth,
Reader, Department of Commerce, Delhi School of Economics, Delhi University
for guiding me in systematic compilation of this study report.
I am indebted to Mr. Rama Kant Verma, B.E, MBA, MFT, Former
Superintending Engineer, Irrigation Department, Govt. of U.P for providing his
able and mature guidance in preparing this dissertation.
I am thankful to Mr. Priyank Verma, Design Consultant, Handloom
Industries Department, Govt. of U.P who despite his busy schedule, took pains to
explain various aspects of textile industry in Uttar Pradesh.
To conclude, I thank the Director of Distance Education, Alagappa
University and the faculty members of the University for providing me an
opportunity to learn this subject and ably satisfying my queries during Contact
Programme. This exposure to practical field has richly benefited me by inducing
confidence in my own capabilities.

TABLE OF CONTENTS
Page No.
LIST OF TABLES v
CHAPTER 1 : INTRODUCTION 1-6
CHAPTER 2 : REVIEW OF LITERATURE 7-9
CHAPTER 3 : METHODOLOGY 10 - 15
CHAPTER 4 : UTTAR PRADESH – A PROFILE 16 – 27
CHAPTER 5 : EXPORT SCENARIO OF U.P. 28 – 111
5.1 EXPORTABLE PRODUCTS AND SERVICES 29 – 96
5.2 BOTTLENECKS IN EXPORT DEVELOPMENT 97 – 100
5.3 EXPORT INITIATIVES IN U.P 101 – 111
CHAPTER 6 : ANALYSIS AND CONCLUSION 112 – 124
CHAPTER 7 : RECOMMENDATIONS 125 – 127
BIBLIOGRAPHY 128 - 130

LIST OF TABLES
Table No. Title of the Table Page No.
I Major Industrial Centres of Uttar Pradesh 26
II Uttar Pradesh at a Glance 27
III Exports of Carpets and Durries from India 31
IV Major Production Centres of Carpets and Durries 32
V Major Production Centres of Textiles 39
VI Exports of Leather and Leather Products from India 45
VII Exports of Art ware of Brass & Other metals from India 49
VIII SSI units & Artisans sector for metal art ware in Moradabad 51
IX Exports of Foodgrains & Cereals from India 65
X Exports of Fruits and Vegetables from India 66
XI Exports of Engineering goods from India 72
XII SSI units for Engineering goods / Hardware in Aligarh 74
XIII Medium / Heavy industries for Engineering goods in Ghaziabad 75
XIV Exports of Gems and Jewellery from India 76
XV Exports of Chemicals, Pharmaceuticals and 80

Herbal products from India
XVI Exports of Sports goods from India 84
XVII Exports of Electronics and Software from India 88
XVIII Foreign Tourist Arrivals and Foreign Exchange for India 92

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1. INTRODUCTION
Legendary novelist Ruskin Bond has expressed his expression of Uttar
Pradesh in following words –
"I had been to other countries - in Europe, Asia and the Middle East – but none
of them had provided even half as much variety, or so much to see and
experience and remember, as this one State in northern India. You can travel
from one end of Australia to the other, but everywhere on that vast continent
you will find that people dress in the same way, eat the same kind of food ,
listen to the same music. This colourless uniformity is apparent in many other
countries of the world, both East and West. But Uttar Pradesh is a world in
itself."
- Ruskin Bond.
This amply indicates geographical, historical, natural,
geological and cultural richness of the land within as well as above the crust.
From ancient days, description of international trade from and to Uttar Pradesh
via inland as well as hydro routes of rivers like Ganga & Yamuna finds place in
epics, purans and folklore myths. During its slavery days and in pre -
independence era, the exports from U.P remained subdued and could not leap
high for a variety of economic and political reasons even though its potential
was duly recognized by the then rulers.
After enactment of “Constitution of India” on 26.1.1950 planned
development and harnessing of resources started through “Five year plans”. It
was a Herculean task to revive and revitalize the industrial potential of state
marginalized during the British rule, some of which were at the verge of
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extinction. After creation of basic infrastructure required for industrial growth
like Power, Transport, Communication, Water, manpower and Land
management the state stood up to bid itself as a potent foreign exchange
earner for the national exchequer.
In order to expeditiously implement its principal objective of
improved productivity, the state has reorganized its industries as major, small &
cottage and divided them in various sectors of traditional and Non-traditional
industries such as Woolen carpets, Textiles & Garments, Leather, Brassware,
Wood, Glass & Ceramics, Agro products, Engineering goods, Gems &
Jewellery, Chemicals, pharmaceuticals & Herbals, Sports Goods and
Electronics & Software. The present status, growth and existing exports of all
these has been studied in this dissertation. Services such as Tourism, Software
Consultancy, Irrigation and Power Consultancy etc. occupy an important role in
foreign exchange revenue. This sector has been dealt in a separately.
The scope of study has been restricted to above mentioned
industries / products from data availed and compiled from various sources of
information revealed in every chapter. Category wise the following industries
which contribute to exports revenue have been studied. :
(A) TRADITIONAL PRODUCTS
1. Hand Knotted Woolen Carpets & Durries
2. Yarn Textiles and Readymade Garments
3. Leather and Leather Products
4. Artware of Brass and other metals
5. Products of Wood
6. Glass and Ceramics

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(B) NON TRADITIONAL PRODUCTS
1. Agro and Processed Food Products
2. Engineering Goods
3. Gems and Jewellery
4. Chemicals, Pharmaceuticals and Herbal Products
5. Sports Goods and Toys
6. Electronics and Software
SERVICES
1. Tourism
2. Consultancy services being provided by the intelligentsia of
U.P. is substantive in the field of Irrigation, Power,
Education etc. but these services having flourished only in
recent years, the data of State’s Contribution in the
National scenario could not be available in spite of best
efforts. Hence separate chapter has not been allotted to
these services.
In the next part of the dissertation, various bottlenecks in exports
development and major export initiatives taken by State and Central
Government have been studied followed by an analysis and Conclusion.
Recommendations have been given in the last Chapter of the
dissertation.
NEED FOR STUDY
The state of Uttar Pradesh constituted as per recommendations
of States Reorganisation Commission in Nov. 1956, was bifurcated in two
states namely Uttar Pradesh and Uttaranchal ( carved out to form a separate
4
state of hill region ) in November 2000. the separation of Uttaranchal took away
lot of natural resources, Industries, Hydro-Power and Artisan skill from Uttar
Pradesh. The information and data available prior to Nov. 2000 has lost
relevance for projection of gradual exports growth of the state. An in-depth
study of export potential on the basis of present availability of Natural, Water
and Human resources has become essential to arrive at a realistic picture.
Although every effort has been made to modify data, used for comparative
study, resultant to bifurcation of the state but still an element of error of
dissecting the original information always exist. The present study is anticipated
to throw true light on factual situation and assist the administration to modify its
plans with more clarity. It may also become a benchmark for further research in
this field.
PROBLEM FOCUS
During the post decade other states like Gujarat, Maharashtra,
Punjab have increased their international business to considerable extent
whereas U.P being much more populous and resourceful is lagging far behind.
It is absolutely critical to revisualise and reassess the state’s export potential to
shape its destiny. Unless one knows where he stands and which goal could he
attain, he can not spread its wings to soar in sky. This dissertation is an attempt
to focus attention of the administration, economists, planners and the political
leadership towards strength and weaknesses of the state’s export scenario.

5
OBJECTIVES
MAIN OBJECTIVE:
The main objective of this study is “To evaluate the present
export scenario of the state of U.P”. It also aims to suggest measures to
induce larger participation of U.P. in International Business.
OTHER OBJECTIVES :
Other objectives of this study are :
1. Identification of products and services generated in U.P which are in
demand for exports.
2. Identification of bottlenecks, lacuna and constraints faced by industries
and organizations involved in production of exportable goods &
services.
3. Identification of new horizons to enlarge spheres of international
business in U.P
4. Evaluation of initiatives, policies, incentives etc. being pursued by the
Govt. of U.P and the Central Govt. for exports promotion.
HYPOTHESIS
NULL HYPOTHESIS , H0 : Uttar Pradesh has enormous potential to
enhance its export earnings and contribute significantly to the national
exchequer, in proportion to its richness of resources and artisan skills.
ALTERNATIVE HYPOTHESIS , Ha : Uttar pradesh does not have the
potential to enhance its export earnings and contribute significantly to the
national exchequer.
6
LIMITATIONS :
1. Owning to various physical and financial constraints and non-
cooperation of Govt. employees, primary data could not be fully
collected and the study had to be based on information available in
various journals, Govt. publications and data available in the Internet.
2. The exact impact of State’s bifurcation in year 2000-01 on export
revenue could not be procured, so the interpolated figures (After deleting
industries transferred to Uttaranchal) have been used.
3. Latest export statistics (Year 2004-05) could not be obtained in spite of
best efforts, as they were still under compilation and editing.
4. Several other minor sectors contributing to exports earnings could not be
included in this study due to time constraint and lack of availability of
information.
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2. REVIEW OF LITERATURE
Books
1. Study Material, Research Methodology – Theory, Alagappa
University, Karaikudi, 2004, Pp 1-125.
Different aspects of Research Methodology had been discussed
in the study material that helped in formulating appropriate research
design and conducting the research.
Reports / Policies
1. Government of Uttar Pradesh 1998, Department of Small Scale
Industries and Export Promotion and Department of Agriculture
Exports : Export Policy (1998-2002) , Pp 1-12
In 1998, a New Export Policy was announced by Government of
Uttar Pradesh to formulate strategies for the creation of a favourable and
synergic environment for export growth and to take advantage of trade
liberalization and economic globalization.
The first part of the policy dealt with issues which impact on all
exporting units and on the export environment as a whole. The issues taken up
were General issues, Infrastructure, Financial Issues, and Other related issues.
The policy laid the foundation of Export Promotion Bureau with ten product
promotion groups. The ten product Groups were as follows :
(a) Handicrafts Promotion Group , (b) Carpets Promotion Group , (c)
Leather Goods Promotion Group , (d) Agro and Processed Foods Products
Promotion Group , (e) Textiles and Readymade Garments Promotion Group

8
, (f) Toys and Sports Goods Promotion Group , (g) Engineering and
Hardware Promotion Group , (h) Electronics and Software Promotion Group
, (i) Gems and Jewellery Promotion Group and (j) Chemicals and Herbal
Products Promotion Group.
In the second part, policy measures on those issues which influence
specific export sectors were proposed.
2. Confederation of Indian Industry, Northern Region, Uttar Pradesh –
An Agenda for Growth, Chandigarh, October – 2004, Pp 1-18
This report attempted to highlight the rapidly progressing business
environment in the State. The report focused on State’s competitiveness
across key sectors, viz. Fiscal, Agriculture, Industry, Tourism, Infrastructure,
Power, Social and Urbanisation.
The report stated :
• Current Scenario of State in all the above stated segments
• Key initiatives undertaken by the State Government and
• Concrete recommendations for the State Government to
accelerate the pace of economic growth.
The report concluded that Uttar Pradesh should impart an impetus for
growth through a reforms based agenda. The reforms suggested were :
1. Need to analyse unexplored areas, including problems of

uneven growth and give thrust to small-scale industries, IT, Bio-
Technology etc.
2. To create an enabling environment for private sector growth.
3. Speedy introduction of VAT.

9
3. Other Policies
A number of other policies of Government of Uttar Pradesh were also
studied to collect industry specific information.
The policies that were studied are as following :
¾ Agriculture Policy , 1999
¾ Industrial & Service Sector Investment Policy – 2004
¾ Biotech Policy – 2004
¾ Food Processing Policy – 2004
¾ Information Technology Policy – 2004
¾ Sugar Policy - 2004
Online Resources
1. Official Website of Government of Uttar Pradesh
URL: http://upgov.nic.in
The official website of government of Uttar Pradesh provided general
information about the state and also provided internet links to all the
Departments, Organisations and Districts of the state.
2. Official Portal Of U.P Government
URL: http://www.upportal.com
The Portal provided almost all the necessary information about the
state viz. State Profile, Agriculture, Industry, Handicrafts, Infrastructure,
State policies, District profiles etc.

10
3. METHODOLOGY
OBJECTIVES
MAIN OBJECTIVE:
The main objective of this study is “To evaluate the present export scenario
of the state of U.P”. It also aims to suggest measures to induce larger
participation of U.P. in International Business.
OTHER OBJECTIVES :
Other objectives of this study are :
1. Identification of products and services generated in U.P which are in
demand for exports.
2. Identification of bottlenecks, lacuna and constraints faced by industries
and organizations involved in production of exportable goods &
services.
3. Identification of new horizons to enlarge spheres of international
business in U.P
4. Evaluation of initiatives, policies, incentives etc. being pursued by the
Govt. of U.P and the Central Govt. for exports promotion.
HYPOTHESIS
NULL HYPOTHESIS , H0 : Uttar Pradesh has enormous potential to
enhance its export earnings and contribute significantly to the national
exchequer, in proportion to its richness of resources and artisan skills.

11
ALTERNATIVE HYPOTHESIS , Ha : Uttar pradesh does not have the
potential to enhance its export earnings and contribute significantly to the
national exchequer.
PERIOD OF STUDY : Current Status , 2003 – 04
The research is to evaluate the present export scenario of Uttar
Pradesh, therefore the existing status needs to be focused so that appropriate
policy measures can be recommended.
AREA OF STUDY : UTTAR PRADESH
Since the research is a specific case study of Uttar Pradesh, it had to be
focused on U.P only.
RESEARCH DESIGN :
An Exploratory Research has been conducted to evaluate the
present export scenario of Uttar Pradesh. The research is mainly based on
Secondary data and it is more of a qualitative nature.
SOURCES OF DATA
Most of the data has been collected through Secondary Sources.
Various Reports, Journals, Government Policies, Notifications and Circulars,
Official websites and other online resources had been referred to collect
specific information.
A principal source of information were the Policies formulated by
Department of Industrial Development, Government of Uttar Pradesh,
especially the “Export policy-1998” and “Industrial & Service Sector Investment
12
Policy – 2004”. These policies helped in identifying the exportable products and
services of the state. Other policies like Food Processing policy -2004, Biotech
policy – 2004, Sugar Policy – 2004, Industrial Policy – 1999 and Agriculture
Policy – 1999 were also referred to collect sector specific data.
The State Surveys and industrial reports published by
organizations like Confederation of Indian Industry (CII) and Federation of
Indian Chamber of Commerce and Industry (FICCI) also constitute valuable
source of information.
The sector specific export statistics had been collected through
the Department of Commercial Intelligence and Statistics, Ministry of
Commerce, Annual report of Ministry of Textiles and Export statistics of various
Export promotion councils.
A Majority of data has been collected through online resources.
The official websites of Government of Uttar Pradesh, its departments,
organizations and districts facilitated collection of reliable data about the state.
Another very important source of information had been the official portal of
Uttar Pradesh (www.upportal.com). The website illustrated a comprehensive
portrayal of the State in terms of Industry, Handicrafts, Agriculture,
Infrastructure etc.
Several other Online journals, Industry portals, Business related
websites, Online encyclopedias etc. were also consulted to collect the required
information.
Some specific information has been collected from Government
Officials and Consultants by having discussions with them.

13
SAMPLE DESIGN :
As the research is based on Secondary Data Collection, Sample Design was
not required.
TOOLS OF ANALYSIS :
The Export potential of Uttar Pradesh has been evaluated on the basis of a
Two-phase Analysis.
Phase I : U.P’s Export Potential on the basis of
factors affecting export
The export potential of U.P has been evaluated on the basis of
following factors :
1. Political and Administrative Environment
2. Resource Availability
(i) Natural
(ii) Economic / Financial
(iii) Human
3. Infrastructure
(ii) Basic
(a) Land Availability
(b) Transportation
(c) Power
(d) Communication
(iii) Industrial
(Industrial Estates, SEZ, EPZ)
4. Investment
(i) Domestic
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(ii) Foreign
5. Research and Development
6. International Exposure for sales promotion
7. Policy Implementation
8. Technology Upgradation
9. Cost Competitiveness
10. Range of Exportable Products
Phase II : Product wise Export Potential analysis
In the second part of the analysis, a product-wise export potential has been
evaluated. The criterion for evaluation are
1. Availability of Basic Input
2. Technical expertise
3. Infrastructure available for the industry
The products evaluated are:
1. Traditional Products : a) Hand Knotted Carpets and Durries ; b)
Textiles and Readymade Garments ; c) Leather and Leather
Products ; d) Artware of Brass and other metals ; e) Products of
Wood ; f) Glass and Ceramics
2. Non Traditional Products : a) Agro and Processed Food
Products ; b) Engineering Goods ; c) Gems and Jewellery ; d)
Chemicals, Pharmaceuticals and Herbal Products ; e) Sports
Goods and Toys ; f) Electronics and Software

15
A 5-point Rating Scale has been used for the analysis. The rating scale
used is as follows :
5-Point Rating Scale
Rating Level
(A) Excellent
(B) Very Good
(C) Good
(D) Average
(E) Poor
LIMITATIONS OF ANALYSIS :
1. The analysis is based on interpolated figures as latest export statistics
could not be obtained in spite of best efforts..
2. Some of the available export statistics were in Dollar terms which have
been converted to Rupee terms using a standard exchange rate of 1$ =
Rs 45.
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4. UTTAR PRADESH – A PROFILE
4.1 LOCATION
Garlanded by the Ganga and Yamuna , The two pious rivers of Indian
mythology, Uttar Pradesh is surrounded by Bihar and Jharkhand in the East,
Madhya Pradesh in the South, Rajasthan, Delhi, Himachal Pradesh and
Haryana in the West and Uttaranchal in the north. Its area of 2,36,286 sq kms.
lies between latitude 24 deg to 31 deg and longitude 77 deg to 84 deg East.
Area wise it is the fourth largest State of India. In sheer magnitude it is half of
the area of France, three times of Portugal, four times of Ireland, seven times of
Switzerland, ten times of Belgium and a little bigger than England.
4.2 HISTORY 1:
4.2.1 Ancient Period
Uttar Pradesh in one of the most ancient cradles of Indian culture. While it is
true that no Harappa and Mohan-Jodaro have been discovered in the State, the
antiquities found in Mirzapur, Sonebhadra, Bundelkhand and Sarai Nahar area
of Pratapgarh and excavation of Harappan objects in Alamgirpur in Meerut link
its History to early Stone Age and Harappan era.
History of Uttar Pradesh dates back to ancient times. In the later Vedic
age, it was called Brahmarshi Desa or Madhya Desa. Ramayana and
Mahabharata appear to have been composed in the backdrop of Uttar Pradesh.
Being on the route of invaders from north-west and forming part of the rich
fertile plain between Delhi and Patna, the history of Uttar Pradesh is closely
linked to the history of north India.

17
In sixth century B.C., Out of the above 16 Mahajanapadas, eight were in
present Uttar Pradesh. More known among them were Kashi, Kosal and Vatsa.
With the emergence of the Mauryans in the 3rd century B.C., a new
chapter was opened in the history of Uttar Pradesh. The whole of Uttar Pradesh
enjoyed peace and prosperity during the reigns of Chandragupta, his son
Bimbsara and grandson Ashok. Ashok Chakra with Pillar “The Lion Capital”
inscribed in the Ashokan Pillar at Sarnath has been adopted by the Government of
India as the State Emblem. The Ashokan Pillars have been found at Sarnath,
Allahabad, Meerut, Kaushambi, Sankisa, Kalsi, Siddharthnagar and Mirzapur, all
of which are in Uttar Pradesh.
Since the downfall of Mauryan empire till the rise of Guptas in the 4th
century, Sungas, IndoGreeks, Satvahans and Kushans ruled over different parts
of Madhya Desh. Kanishka was doubtlessly the greatest among all Kushan rulers.
Mathura was a well known centre of art in his reign.
With the advent of the Guptas in 4th century AD, political unity was again
restored in India and during two centuries of their rule, Madhya Desh (Uttar
Pradesh) shared general peace and prosperity with other regions.
After the decline of the Gupta empire in 6th century AD, the power was
once again decentralised. The Maukharis of Kannauj ruled over a large part of
Madhya Desh for some time. In 606 AD, their last ruler, Grihwarman was defeated
and killed by Malva king Devagupta. After his death, the reins of administration
were handed over to his brother-in-law Harshavardhan, the king of Thaneshwar.
During Harsha’s rule, Kannauj became a major city of north India. Because of its
grandeur and prosperity, it was known as "Mahodaya Shri".
1
Source : Official Website for UP Government, URL:http://upgov.nic.in
18
After Harsha, north India was once again in turmoil. In the last quarter of
8th century AD, Gurjar Pratihars succeeded in capturing Kannauj. They held
sway over north India during the whole of the 9th and 10th centuries. They
were vanquished by Mahmud of Ghazni in 1018-19 AD.
After the decline of Pratihars, anarchy once again gripped Madhya Desh
but rise of Gaharwars at the time helped in restoration of peace and order in
the region. Due to short-sightedness of gaharwars ruler Jaichandra (1170 -
1193 AD), Chauhan king Prithviraj III had to face defeat at the hands of
Mahammad Ghori at the Battle of Tarain in 1192 AD and he himself was
defeated at Chhandwar in Etawah next year. Soon, Meerut, Koil (Aligarh),
Asani, Kannauj and Varanasi also fell victims to invaders.
4.2.2 Medieval Period
In 1206 AD, Qutub-ud-din Aibak ascended the throne of Delhi and
founded the Slave dynasty. The Slaves and after them, the Khilijis and
Tughlaqs gradually extended the frontiers of Delhi Sultanate. The present
Uttar Pradesh formed part of their empires. After the end of Tughlaq dynasty,
Lodies ruled the Delhi empire from 1414 AD to 1526 AD. An important event of
the contemporay history was that Sikandar Lodi made Agra his sub-capital.
In 1526 AD Babar defeated Ibrahim Lodi, the last of the Lodi rulers at the
Battle of Panipat and occupied Agra. Thereafter, Babar captured other regions
of Ganga valley also viz. Sambhal, Jaunpur, Ghazipur, Kalpi, Etawah and
Kannauj and thus founded the Mughal empire. However, his son Humayun
had to face a crushing defeat at the hands of Afghan chief Sher Shah. The
main battlefield in the war between the Mughals and Sher Shah were Chunar,
Chausa and Bilgram. After the death of Sher Shah in 1545 AD, Humayun
19
ascended the throne once again and after his death the second battle of
Panipat was fought. Akbar ascended the throne in 1556 AD ushering in a new
era of peace, prosperity and strong administration, of liberalism and integration
of Hindu and Muslim cultures. During that period Uttar Pradesh had a
significant role in taking 'Hindustan' to the pinnacle of progress, prosperity and
glory. Two famous ministers of Akbar, namely Birbal and Todermal, belonged
to Uttar Pradesh. Agra continued to be the capital of the Mughal empire till
Shahjahan shifted the capital to Delhi.
During the reign of Aurangzeb, Bundelkhand sounded the siren of revolt
under Veer Chhatrasal. Chhatrasal took the help Peshwa Bajirao which helped
the Marathas to get a foothold in Uttar Pradesh for some time.
4.2.3 Modern History
In 1732 AD, Awadh was declared independent by the local governor.
During the reign of IIIrd Nawab of Awadh, Shuja-ud-daula (1754-1775AD),The
British East India Company began their expansionist policies in the region.
Uttar Pradesh preserved its intellectual leadership even under the British
administration. In 1857, the outbreak of First War of Independence took place
in Meerut. In this revolt, the people of Uttar Pradesh played a glorious role. The
sense of duty and dedication to the cause of freedom displayed in this historic
struggle by Rani Lakshmi Bai of Jhansi, Begum Hazrat Mahal of Avadh, Bakht
Khan, Nana Saheb, Maulvi Ahmadullas Shah, Raja Beni Madhav Singh,
Azimullas Khan and a host of other patriots have made them immortal.
In 1902, The British combined Agra and Oudh and called it United
Provinces of Agra and Oudh. The name was shortened to the United Provinces
in 1935.
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4.2.4 After Independence
In January 1950, When the Constitution of free India came into force
United Provinces became a full-fledged province and was renamed as Uttar
Pradesh with Lucknow as its capital.
In the year 2000 , state of Uttaranchal had carved out from the
northwestern section of Uttar Pradesh.
4.3 NATURAL WEALTH
Uttar Pradesh is endowed with natural wealth in abundance. This
wealth lies hidden below a variety of rocks of different ages found in lofty
mountain ranges of the Himalayas in the North and Vindhyan ranges in the
South. The diversity of flora and fauna displayed here due to vast area, big and
small rivers, varieties of climatic conditions, and different kinds of soil are hard
to find elsewhere.
4.3.1 Rivers : The main rivers are the Yamuna, the Ganga, the Ramganga,
the Gomti and the Ghaghara.
4.3.2 Minerals : The minerals found in Uttar Pradesh include limestone which
is found in Guruma-Kanach- Bapuhari in Mirzapur district and Kajrahat in
Sonebhadra district; dolomite which is found in Mirzapur, Sonebhadra and
Banda, glass-sand found in Karchhana tehsil of Allahabad district, Karwi in
Banda district and Mau district; marble found in Mirzapur and Sonebhadra;
bauxite found in Rajhgewan in Banda district; non-plastic fireclay found in
Bansi, Makri-Khoh area of Mirzapur district; and Uranium found in Lalitpur
district. Besides, Barytes and Edalusite are found in the districts of Mirzapur
and Sonebhadra. Copper, Phosphorite, coal, Sand-stone, pebbles, reh, salt
punter, marang, sand and other minor minerals are also found in the State.
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4.3.2 Vegetation and Flora : Tropical Moist Deciduous Forests are found in
the moist region of Terai. Main trees are Sal, Ber, Gular, Jhingal, Palas, Mahua
Semal, Dhak, Amla, Jamun, etc. Tropical Dry Deciduous Forests are found in
all parts of the plains, and usually in central eastern and western regions.
Important trees are Sal, Palas, Amaltas, Bel, Anjeer etc. Neem, Peepal,
Sheesham. Mango, Jamun, Babool, Imli (Tamarind) etc. grow along river banks
and in other moist regions. Tropical Thorny Forests are mostly found in south-
western parts of the State. Important trees of the region are Phulai, Khair,
Kokke, Dhaman, Danjha, Neem, etc. Various types of resin and gum are
obtained from these trees.
4.4 POLITICAL ENVIRONMENT :
Political environment in Uttar Pradesh is highly unstable
characterized by frequent changes in government, unsteady coalitions,
pressure tactics, uncertain policies and weak governance. Seeds of Instability
started creeping into the system in early eighties, became the order of the day
after the collapse of the Congress and non-congress regimes taking over the
state. More than ten Chief Ministers in fifteen years (between 1989 and 2004)
explain almost everything.
4.5 ECONOMY1
Uttar Pradesh is the second biggest state economy in the country,
with a share of 10.7% in aggregate domestic product. Among the major states,
Uttar Pradesh ranks fourteenth in per capita income. Per Capita Income of the
state was Rs 10,817 in 2003-04 as against a per capita income of Rs. 20,989
22
for India. The GSDP growth rate during the period 1993-94 to 2003-04 was 4.5
% as against a corresponding figure of 5.9 % for India. Fiscal deficit increased
from 5.6% of GSDP in 2000-01 to 6.8% in 2002-03.
4.6 AGRICULTURE 2
Principal food crops are wheat , rice, gram, barley, maize and bajra. The
main cash crops are cotton, oilseed, groundnut, sugarcane, tea, sesamum,
rapeseed, mustard and tobacco. Opium grows heavily. Jute is also cultivated. It
is the largest producer of sugarcane. The state is called India’s “Sugarcane
Bowl” . The net cultivated area is 168.25 lakh hectares. Other key facts about
agriculture in U.P are as follows :-
¾ Largest producer of wheat, pulses, sugarcane, tobacco, potato and milk
in the country
¾ For wheat, sugarcane, potato and tobacco, the share of Uttar Pradesh
varies from 30 to 50% of the country’s production.
¾ Highest yield in the country for pulses and tobacco.
¾ One of the highest irrigation intensity at 66%.
¾ Food-processing sector picking up. The total investment was more than
Rs 200 crore in 2004-05.
4.7 INFRASTRUCTURE
4.7.1 Transport :
4.7.1.1 Roads : There are National Highways, 3774 Km, State Highways
7392 Km and rest is district roads. Total road length is 1,03,795.
1
Source : CII, Uttar Pradesh – An Agenda for growth , Oct’04, Chandigarh
2
Ibid
23
4.7.1.2 Railways : Main junction of the northern network is Lucknow, Agra,
Kanpur, Allahabad, Mughalsarai, Varanasi, Tundla, Gorakhpur, Gonda,
Faizabad, Bareilly and Sitapur are other important railways junction. The total
length is 8,886 Km.
4.7.1.3 Aviation : Airports located at Lucknow, Kanpur, Varanasi, Allahabad,
Agra, Jhansi, Bareilly, Hindon, Gorakhpur, Sarsawa and Fursatganj.
4.7.2 Telecommunication
In Telecommunications, the rate of growth in the last two years
has been higher in Uttar Pradesh than even the national average. There are
2,885 telephone exchange in the state. In order to provide for easy international
connectivity, international gateways have been established at Kanpur and
Lucknow. Earth Stations have been set up at NOIDA / Lucknow / Allahabad /
Varanasi and Agra. NOIDA is a part of Delhi Telecom Network and has 33,000
lines on digital electronic exchange including an Exchange of 10,000 lines on
EWSD German Switching Technology.
4.7.3 Irrigation and Power :
Lakhwar Vyasi, Eastern Ganga Canal, Maudaka dam, Sarda Sahayak,
modernization of Upper Ganga canal, Saryu canal and Urmil dam are some of
the upcoming irrigation projects. The net irrigated area is 11.68 million
hectares.
4.8 INDUSTRY1
Industrialisation in recent years has looked like a pipe-dream for the
powers that be. But the efforts are on to make the state industrially viable. Now
1
Source : http://www.upportal.com
24
the industrial policy of the state with reference to the development of infra-
structure facilities is based on the following three planks :-
¾ To develop infrastructure through private sector investment.
¾ Integrated and accelerated development of selected geographical nodes
based on industrial potential.
¾ Up gradation of present infrastructure facilities.
The total investment in the industrial sector is to the tune of nearly
thousand crores and the total number of those employed by them comes to
about 24 lakhs. There are 2,616 medium and large industries and 41,266 small
scale industries. Important industries include cotton and wollen textiles, leather
and footware, distilleries and breweries, paper, chemicals, agricultural
implements, glass and glass products, Silk fabrics, ceramics, dolls, woodwork,
metalware, stoneware, perfumery, leather articles, bamboo products and
musical instruments are included under the traditional handicrafts. The state is
facing problem of imbalance in the industrial development. The following facts
narrate the real story :-
1. Out of total number of small industries, 65 % are located in 12 districts
of the state, namely Noida, Meerut, Ghaziabad, Kanpur,
Muzzaffarnagar, Allahabad, Lucknow, Aligarh, Bulandshahar, Mathura,
Barabanki, and Agra.
2. Of the total investment in medium and heavy industries, 80 % is there in
only 14 districts of the state.

25
3. The investors are mostly attracted towards the western districts of the
state. 70% of the total investment proposals that had come to state in
the last 5 years were for eight districts namely- Ghaziabad, Allahabad,
Gautam Buddh Nagar, Bijnore, Sultanpur, Mathura, Muzzafarnagar and
Bulandshahar-the highest 25 percent being for Gautam Buddh Nagar
and Ghaziabad. Of these eight districts only two- Allahabad and
Sultanpur are outside the western part of the state.
4. As many as 7 districts have attracted almost nil investment till recently.
They are- Mahoba and Chitrakoot (in Bundelkhand region), Koushambi,
Shravasti, Ambedkar Nagar (in East) and Kannauj and Baghpat (in the
western part of the state).
Major Industrial Areas of U.P are shown in Table No. I

26
Table I : Major Industrial Centers of Uttar Pradesh
CENTERS GOODS MANUFACTURED

Agra - the city of Taj Shoes, leather goods, stone handicraft
work
Saharanpur - the wood town Specialized wood handicrafts and
handlooms
Firozabad - the glass town Glass industry , Bangle industry
Bareilly - the Bamboo town Cane furniture, Match box industry,
artificial rubber industry.
Lucknow - the city of Nawabs Chikan & Zardozi industry
Meerut - the scissor city Sports goods, Leather Washers,
Rewari/Gajak and scissors industry
Mirzapur - the power town Power generation, cement, aluminum and
carpet industry
Kanpur - the industrial town Textiles, Leather Goods, Electronics,
Automobile, Pan Masala and vegetable oil
industries
Ghaziabad - son of Delhi Food Processing, Mechanical spares, Pan
Masala, Chemicals
Gautam Budh Nagar (NOIDA) – Software, Electonics, Automobiles,
the infotech city Chemicals, film industry, Leather footwear
Aligarh - the town of locks High quality locks, knives and scissors
industries
Varanasi - the city of Ghats Zari, Resham handicrafts, Silk saris and
carpet industry
Moradabad - the brass town Brassware handicrafts and goods industry
Kannauj - the city of Itr Itr, herbal perfumes
Source : http://www.upportal.com/infrastructure/index.asp
27
Table II : UTTAR PRADESH AT A GLANCE
Capital Lucknow
Area 2,36,286 sq. km
Population (2001 Census) 16,60,52,859
Decadal Growth Rate 25.80 %
Density per sq. Km (2001) 689
Urban Population 20.78 %
Male 8,74,66,301
Female 7,85,86,558
Sex Ratio (Females per 1000 males) 898
Literacy Rate (2001) ( Males – 70.23 57.36 %
% , Females – 42.98 % )
No. of Districts 71
Cities 631
Nagar Nigams 11
Legislature Bicameral
Assembly Seats 404
Lok Sabha Seats 80
Principal Languages Hindi and Urdu
Main Rivers Ganga, Yamuna, Gomti, Ramganga
& Ghaghara
Fruits Mango, Guava
Main Industries Cement, Vegetable oils, Textiles,
Cotton yarn, Sugar, Jute, Lock &
Scissors, Carpet, Brassware,
Glassware & Bangles
Main Folklores Kajari, Chaiti, Alha, Birha, Puran
Bhagat, Dhola Bhartrihari, Rasiya
Main Folk Dances Pandav, Karma, Charkula, Tharu,
Paidanda, Dhobiya, Rai and Shera
Tourist & Historical Places Sarnath(Varanasi), Kushinagar,
Piprahwa Shravasti, Kaushambi, ,
Agra, Lucknow, Chitrakut,
Jhansi and Meerut.
Source : Official Website of U.P Government
URL : http://www.upgov.nic.in
28
5. EXPORT SCENARIO OF UTTAR PRADESH
Exports play a crucial role in the economy of the country. In order
to maintain a healthy balance of trade and foreign exchange reserves, it is
necessary to have a sustained and high rate of growth of exports.
Uttar Pradesh is the fourth largest and the most populous state of
India, with 16.2% of India’s population. The State, endowed with fertile land,
salubrious-climate and perennial river systems, has long been, the granary of
India. The State has a well-developed traditional industry besides the mineral
based industry. The State is one of the leading producers of food grains and
other commercial crops in the country. However, share of Uttar Pradesh in
the country’s exports is only 6%. Total exports from the State in the year
1997-98 were of the order of Rs. 7500 crores. In the Export Policy 1998-2002,
Govt. of Uttar Pradesh targeted an export turnover of about 20,000 by the year
2002 but efforts in this area, had yielded uneven results. Barring Software
Exports, share of most of the products from Uttar Pradesh in India’s total
exports has remained stagnant. However, given the natural and manpower
resources of the State there exists great potential for increasing the exports
from this area.
The State has a long and rich tradition in the area of handicrafts,
which has neither been fully exhibited in international markets, nor has its
potential been fully exploited. These traditional handicraft products mainly
constitute exports of the State. 60% of the entire export basket of the State is
constituted by hand knotted carpets, brassware and leather products. The

29
State accounts for the largest share of SSI units in the country, with 12 percent
of over 23 lac units and most of them are export oriented.
In addition to the traditional export products, Nontraditional, high
technology products like computer software, toys, gems and jewellery and agro
and processed foods., too have recently entered the export field. Uttar Pradesh
is a leading producer of wheat, pulses, sugarcane, tobacco, potato and milk in
the country. However, in Uttar Pradesh, agricultural exports make up only 7%
of the total exports of the state. The corresponding figure for India is 21%. In
the year 2003-04, Uttar Pradesh was Fourth largest software exporter (Rs 45
billion) in the country. It is the biggest manufacturer of office machinery in the
country (25%) and has a Fifth highest share in the country in manufacturing
value added products(7 %). Labour efficiency (as measured by the value of
output per worker, (Rs in lakhs) is higher in Uttar Pradesh (10.99) than the
national average (10.68). The State has become a hub for corporate R&D with
many domestic players and MNCs establishing their facilities.
5.1 EXPORTABLE PRODUCTS AND SERVICES FROM U.P
Different Exportable products / Services from Uttar Pradesh are as following :
A. Traditional Areas / Products :
1. Hand Knotted Woolen Carpets and Durries
2. Yarn, Textiles & Readymade Garments
3. Leather and Leather Products
4. Artware of Brass and other metals
5. Products of wood

30
B. Non Traditional Areas / Products
1. Agro & Processed food products
2. Engineering goods and Hardware
4. Chemicals, Pharmaceuticals and Herbal Products
5. Toys and Sports Goods
6. Electronics and Computer Software
C. Services
1. Tourism
2. Consultancy
31
5.1(A) TRADITIONAL PRODUCTS
5.1(A1) HAND KNOTTED WOOLEN CARPETS AND DURRIES
Exports from India
Export of Carpets and Durries constitute about 18% of total Handicrafts exports
from the country. During 2002-03 the export of hand knotted carpets and other
floor coverings was Rs.2590.26 crores registering an increase of 6.33 % in
rupee terms compared to the corresponding period of 2001-02. However in
2003-04, exports of carpets decreased by 11.2 % in rupee terms to Rs.
2300.04 crores. During 2004-05 (April - January 2005), carpets exports were
Rs. 1819.56 crore.
The Item – wise exports of Carpets and floor coverings since 1998-99 is shown
in Table no. III
Table III : Exports of Carpets and Durries from India
(Rs. Crores)
Item 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
(upto
Jan’05)
Carpets and
other floor
coverings 1888.45 2045.96 2152.69 2293.79 2015.11 1655.36
1. Woolen 153.93 167.03 198.27 209.42 198.69 117.25
2. Silk 93.65 102.16 85.17 87.05 86.24 49.95
3. Synthetic
Total 2136.03 2315.15 2436.13 2590.26 2300.04 1819.56
Source : Ministry of Textiles, Annual Report (Handicrafts) - 2004-05
Major Export Markets : U.S.A, Germany, U.K, France, Japan

32
Carpet / Durry Industry in U.P
The largest concentration of carpet weaving in the country is in
Uttar Pradesh with 90 percent of the production and 75 percent of the weavers.
Exports of Hand knotted Woolen Carpets and Durries constitute
about 25% of total commodity exports from the state. In 1997-98, exports of
carpets and durries from U.P were Rs. 1730 crores.
Product Range : Woolen and Synthetic Carpets, Durries, Cotton Carpets
Production Centres in U.P :
Table IV : Major Production Centres of Carpets and Durries
Products Centers
Woolen & Synthetic Carpets Mirzapur , Bhadohi, Khamaria, Agra,
Shahjahanpur
Durries Agra, Fatehpur Sikri, Bareilly,
Farrukhabad, Hathras
Cotton Carpets Amroha, Agra, Farukhabad, Fatehpur
Sikri, Hathrus
Source : Carpets Export Promotion Council, www.india-carpets.com
The main centers are Mirzapur, Bhadohi, Khamaria and
about 500 villages in this area. The industry here however is modern for it was
sponsored or encouraged by the British who took to trade in carpets because of
a growing demand for them abroad. Carpet weaving itself in this region goes
much further back, for during Emperor Akbar's time it existed in Allahabad and
33
Jaunpur. But the present centres are mostly export-oriented and in the absence
of any traditional background they produce almost any design. They have
special designs of their own like the Taj Mahal, in natural colour or any tint,
Sirdar in plain body and subdued colours with hand embossed or hand carved
borders in rose-beige, honey-beige, ivory and soft green. They also make use
of the 18th century designs with short clippings of the yarn around the contours
of the pattern to give it a sculpturesque look. Mostly pastel shades are used but
intermingled with bright colours. The design is carefully prepared on a graph
paper with extreme care. Twisted cotton thread is used for the finer weaves
and sometimes jute twine for the rougher qualities. The weaver twists the
thread into two-warp threads for weaving and ties the knot. The carpets of this
region are mostly in medium quality and the knots are around 60 per sq. inch
as the sculptured styled carpets do not call for a large number of knots. These
carpets are popular export items today.
Agra in Uttar Pradesh is one of the old carpet centers of the
Mughal days. It produces both the traditional as well as the new designs. The
weaving is done under the "calling out" system in which the master weaver
follows the design and keeps calling out to the weavers the colors to be used
for each knot. Among the oriental design carpets made, the Indo-Ispahan and
Indo- Kashan are alike except that the former has the long leaf and the latter
the small leaf and flower.
In Shahjahapur, both cotton and woolen carpets are made. The
designs are of the old Persian style. The overall base color is a clear soft
scarlet and the field diapered with golden yellow diamond shapes scattered
34
around, broken by a black line wandering through the field. The border is
formed by geometrical yellow floral and dark lineated leaf design rising at right
angles to a black center line. Among the traditional designs are kethariwala jal,
jainamaz takhdar.
Durries and cotton carpets are made in Fatehpur Sikri, Hathras,
Farukhabad, Bareilly and Amroha. Designs are mostly geometrical patterns.
Light weight Picnic durries are a speciality of Amroha.

35
5.1(A2) YARN, TEXTILES AND READYMADE GARMENTS
Exports from India
The Indian textile industry is among the oldest and most diverse of industries,
where sophisticated technology co-exists with traditional techniques. It is the
second largest textile industry in the world.
The textile industry comprises mainly of two segments (i) organised textile mill
sector and (ii) unorganized textile sector which includes powerlooms,
handlooms, woolen textiles, silk fabrics and craft fabrics.
Textile exports recorded a growth of 15.3% in 2002-2003 and 6.0% in 2003-
2004. During the period April-November 2004, textile exports were US$ 8348.5
million, recording a growth of 4.6% as compared to the corresponding period of
previous year.
SECTOR-WISE ANALYSIS
(i) Readymade Garments:
Readymade garments account for approximately 42% of the country’s total
textile exports. In the year 2002-03 and 2003-04 they logged a growth of 15.5%
and 5.5% respectively. During April-November, 2004, readymade garment
exports totaled US$ 34.5 million, recording a growth of 2.1% as compared to
the corresponding period of previous year.
(ii) Cotton Textiles including handlooms: The export of cotton textiles
comprising yarn, fabrics and made-ups (Mill made / Powerloom / Handloom)
constitute more than 2/3rd of exports of all fibres / yarns / made-ups. Cotton
textiles exports recorded a growth of 9.1% in 2002-03 and 4.2% in 2003-04.

36
During the period April-November 2004, cotton textile exports including
handlooms were US$ 2144.1 million, recording a growth of 5.4% as compared
to the corresponding period of previous year.
(iii) Man-made Textiles: The export of man-made textiles have recorded a
growth of 30.2% in 2002-03 and 28.2% in 2003-04. During the period April-
November 2004, man-made textiles exports were US$ 1286.6 million,
recording a growth of 12.9% as compared to the corresponding period of
previous year.
(iv) Silk Textiles: The export of silk textiles recorded a growth of 3.3% to 2002-
03 and 18.4% in 2003-04 compared to previous year. During the period April-
November 2004, silk textiles exports were US$ 365.0 million, recording a
growth of 15.1% as compared to the corresponding period of previous year.
(v) Woolen Textiles: The exports of woolen textiles declined by 6.8% in 2002-
03, compared to previous year. The decline has been attributed to sluggish
market conditions, over-stocking in major markets. However, woolen textiles
have recorded a significant growth of 33.0% in 2003-04 as compared to the
previous year. During the period April-November 2004, woolen textiles exports
were US$ 294.0 million, recording a growth of 32.7% as compared to the
corresponding period of previous year i.e. 2003.
POST MFA GLOBAL ENVIRONMENT
The liberalized trading regime would result in increased international trade in
textiles thus providing greater export opportunities. India has a very strong and
diverse raw material base manufacturing fibres/yarn from natural i.e., cotton,
wool, silk, jute to artificial i.e., synthetic, cellulosic and multiple blend of such
fibres/yarn. Indian industry has competitive advantage in terms of raw material

37
cost and labour cost in manufacture of yarn and fabric. Therefore, the Indian
textile exports are expected to receive a big push after the dismantling of the
quota regime. According to a recent study by CRISIL (commissioned by ICMF),
the Indian textiles and apparel industry can achieve a potential size of US$ 85
billion by 2010. Of which, the domestic market potential would be US$ 45 billion
and export potential would be US$ 40 billion. Nearly 60% of exports would
comprise garments. This would create 12 million job opportunities, 5 million
direct jobs in textile industry, and 7 million jobs in allied sectors.
Textiles and Readymade Garments Industry in U.P.
For years, the textile industry has been the backbone of the
state’s economy as it contributes significantly to employment generation and
export earnings. The textiles sector occupies a place second only to agriculture
in providing livelihood to the people. The industry accounts for 11.36 % share in
the total commodity exports of the state and a share of 2.26 % in India’s Textile
Export. In 2000-01, exports of Textiles and Readymade Garments were Rs 850
crores.
Product Range :
1. Cotton Textiles :
Handloom is the most priority sector. Cotton textiles and made-
ups are being produced on a large scale in almost every part of the state. A
very wide range of products are being exported to USA, EU and all other major
markets. The Product range includes : Cotton Yarn, Fabrics, Furnishings,
Made-ups, Shirtings, Dress Materials, Cotton Carpets.

38
2. Silk Textiles
Varanasi in Uttar Pradesh has an old tradition in weaving
exquisite Silk Sarees for export to specific countries of the West and Southeast
Asia. Recently, in order to get the global market, production of other items is
also gaining momentum. The other products are Stole, Scarf, Muffler, Mats,
Dress material Running, Furnishing Running, Wall Hangings and made ups like
Curtain, Cushion cover, Table cover, Napkins, Runners
3. Readymade Garments:
The vast cultural and ethnic diversity of the state has enabled a
variety of motifs, techniques and crafts to flourish on this land. Readymade
Garments embellished with traditional Embroidery and Hand printing patterns
are well accepted and admired all over the world, making it a potential sector
for the upper segments of market, domestic as well as global. Market for
Hosiery products and Sports Apparels is also picking up.
Production Centres :
Cotton Textiles : Amroha, Agra, Azamgarh, Bareilly, Etawah,
Farukhabad, Fatehpur Sikri, Ghaziabad,
Gorakhpur, Hathras, Kanpur, Lucknow, Maunath
Bhanjan, Meerut, Tanda
Silk Texrtiles : Varanasi, Azamgarh, Maunath Bhanjan
Readymade Garments : Ghaziabad, Gautam Budh Nagar (NOIDA), Jhansi,
Meerut, Kanpur, Lucknow.

39
Table V : Major Production Centres of Textiles
Production Centre Products

Amroha Handloom Furnishings and Fabrics, Picnic
Durries
Azamgarh Kharri Printing
Agra Durries, Bedsheets, Furnishings, Heavy

dress material
Etawah Bedspreads, Sheetings, Dress materials,

Mixed fabrics
Farrukhabad Cotton Prints, Bedsheets, dress materials,

Mixed fabrics
Fatehpur Sikri Heavy cotton fabrics, Dress materials,

Mixed fabrics
Gautam Budh Nagar Readymade Garments
Ghaziabad Jacquard finishings, Bedspreads, Terry

towels, Linen and Home furnishings,
Readymade Garments
Gorakhpur Terry Towels, towelling, Furnishings, Dress

Materials
Hathras Cotton Fabrics
Jhansi Readymade Garments, Khadi
Kanpur Heavy cotton fabrics, Dress materials,

Mixed fabrics, Hosiery Products
Lucknow Dress Materials, Chikan Work
Maunath Bhanjan Cotton Bedspreads, Sarees, Dress

materials, Mixed fabrics
Meerut Furnishings, Dress Materials, Sports

Apparels
Tanda Figured muslin fabrics, Jamdanis, Cotton

dress materials, Mixed fabrics
Varanasi Silk Sarees, mixed fabrics, Cutwork items,

Dress materials, Furnishings, Stoles,
Scarves, Gauze and Leno fabrics,
Brocades
Source : 1. Handloom Export Promotion Council
2. www.upportal.com
40
Product Specialities
WEAVING 1:
JAMDANI: Amongst elaborate styles in cotton weaving is JAMDANI. It
combines rare finesse with white or coloured designs of great intricacy. The
method of weaving is somewhat like tapestry works in which small shuttles
filled with coloured, gold or silver thread, are passed through the warp as
required for the basic weave. The fabric shows shadowy figured designs,
dreamy and suggestive. Paper patterns are generally used and two weavers
normally work at a loom to accelerate as also simplify the work.
In Tanda in Uttar Pradesh however jamdani patterns in white are worked on a
white surface. The extra weft threads, which create the patterns, are of the
same fine quality as those used in the fabric. The design is, therefore,
discernible clearly only when held against the light.
The designs in floral sprays scattered over the surface are called “Butidaar”,
and in diagonal rows “Tircha”. They have large bold motifs in corners, like the
shawl patterns cones. When the floral motifs from a regular network, it is
known as jhalar. The most striking, however, is the panna hazara which means
a thounsand emeralds, in which the floral design is made to stand out with
flowers in gold or silver, shimmering like precious stones. Other is floral pattern
are phulwari and toradar.
BROCADE : The best-known Varanasi product is the BROCADE, Kinkab as
it is called. In Brocade, patterns are created by transfixing the special threads
in between by skipping the passage of the regular weft over a certain number
41
of warp threads (depending upon the pattern). Brocade designs are woven in
gold, silver silk or cotton threads. When gold and silver threads are used along
with or without silk-threads, thrust either as special weft or warp to create
glittering raised ornamentation,it is called ZARI-BROCADES. The zari thread is
known as 'kalabuttum'. These brocades are distinguished but apt poetic names
like Chand tara (Moon and Stars), Dhupchhaon (Sunshine and shade),
Mazdhar (ripples of silver), Morgala (peacock's neck), Bulbul chasm
(nightingale's eyes).
Some of the variations of Banarasi brocades are :
BANARAS SILK JAMDANI :- Here silk fabric is brocaded with cotton and rarely
with zari threads. The motifs are same as in cotton jamdani. The most
attractive design feature of the Jamdani sari is Konia or a corner-motif having
a floral mango buta.
JANGLA SAREE :- when colourful silk threads are brocaded amidst the usual gold
and silver motifs to create Jangala motifs (Flowers, Creepers etc.)
JAMAWAR TANCHOI SARI :- Using a technique similar to that of brocade,
weavers of Banaras weave saris using colorful extra weft silk yarn for
patterning . This variety is known as tanchoi. Tanchoi fabric is widely
acceptable all over the world
TISSU SAREE :- The renowned Zari brocade weavers of Banaras has evolved a
technique of weaving tissue material which looked like golden cloth by running Zari
in weft a combination of Zari and silk in extra-weft (pattern thread) and silk in warp.
1
Source : www.upportal.com
42
Tissue saris have glazed, shining character due to the use of real gold Zari/Silver
Zari in weft.
CUTWORK SAREE :- Cut work is the cheaper version of the Jamdani variety.
In cut work the pattern is made to run from selvage to selvage letting it hang
loosely between two motifs and the extra-thread is then cut manually, giving the
effect of Jamdani.
BUTIDAR SAREE :- The butidar saree is a rich kind of the Banaras Saree in
high traditional pattern and motiff of the design locally popularised such as
Angoor Bail, Gojar Bail, Luttar Bail, Khulta bail, Baluchar bail, Mehrab bail,
Doller butti,Ashraffi Butti, Latiffa Butti, Reshem Butti Jhummar Butti,Jhari Butta,
Kalma Butti,Patti Butti, Lichhi Butti, Latiffa Butta, Kairy Kalanga Thakka Anchal,
Mehrab Anchal, Baluchar Butta with the use of real gold and silver Jari and
Katan silk in the weft.
Mubarakpur, in Azamgarh, is another important silk centre. Their designs are :
Nagai which has gold circles all over with rich floral patterns in the pallu; the
chunari has the same ground but the pallu is ornamental with gold flowering
shrubs and elaborate flowers. The body has small flowers and is distinctive in
having a narrow border on one side, and broad on the other; the Phulwar has all
over floral patterns with a lovely blend of colours. Here the jacquard loom is in use.
EMBROIDARY 1
CHIKANKARI EMBROIDERY WORKS : Chikankari is the delicate and traditional
embroidery practiced in Lucknow Chikan is a unique craft involving delicate and
artistic hand embroidery on a variety of textile fabric like muslin, silk, chiffon,
43
organza, doriya and organdi. There are 36 types of stitches used in chikan work.
The light chikan saris and chikan kurtas are perfect summer wear. The source of
most design motifs in Chikankari is Mughal.
ZARDOJI EMBROIDERY WORKS : Agra's Zardoji is very unique art of
embroidery in three dimensions. The artist first makes free hand sketches of motif.
Then he embroiders in cotton threads over and over till he gets the required
thickness and movements. Finally the artist takes fibre from silk threads, twists
then together in the shades required for and embroiders with them the particular
piece.
In Lucknow, Zardozi work is done with Golden and Silver threads. These
hand embroidery works are done on sarees, dupattas, lehengas, cholis, caps,
shoes etc.
HAND PRINTING 2
Farrukhabad in Uttar Pradesh is probably the biggest printing unit. One
may call this a veritable treasure house of traditional designs ranging from the
classical bootis, known as dots of Kanauj, the universal mango or Paisley to the
famous Tree of Life. The real Tree of Life in its original form is printed in glowing
tones of crimson, rose, mat brown, soft yellow, blue, and green set against arches,
and shapes of mehrab, with symmetrical trees or jali designs, bordered with
picturesque caliography and inlay work. Taking an old Muslim motif as a base the
Indian craftsmen created a new tree , combining some oriental and some western
motifs.
1
Source : www.indianbusiness.com
2
44
Lucknow's specially is the Paisley design, while local chikan embroidery
patterns are also used.
Jehangirabad was once a noted prints centre and is distinguished for its
bold lines in the Indo-Persian tradition, and toned down colours. The strong
Paisley influence probably flows from the jamdani and jamevar weaves.
Tanda, know for its jamdani weave, is also the centre of a special, very
elaborate type of printing. Its basic characteristic is its graphic quality which gives
the fabric an antique look, achieved by juxtaposing printing blocks. A very
picturesque design is the batoli chints, in which different sized diamond shaped
dots are placed against a deep almost black indigo to create startling effects.
Mathura, famous place for pilgrims, has crafts rooted in its tradition
including printed figures and names of deities, printed in rows all over the famous
scenes from Krishna's life an such other popular episodes, in bold outlines, as
mementos for pilgrims.

45
5.1(A3) LEATHER AND LEATHER PRODUCTS
Exports from India
Leather Industry in India, occupies a place of prominence in the
Indian economy, in view of its massive potential for employment, growth and
exports. India is endowed with 10% of the world raw material and export
constitutes about 2% of the world trade. The leather industry is amongst top 8
export earners for India, providing employment to about 2.5 million persons.
Annual export value is poised to touch about 2 billion US dollars. A large part
(nearly 60-65%) of the production is in the small/Cottage Sector. Considering
the enormous growth potential and very high value addition, there has been
increasing emphasis on planned development, aimed at optimum utilisation of
available raw materials for maximising the returns, particularly from exports.
Table VI : Exports of Leather and Leather products from India

(in Rs. Crores)
Item April’03-Oct’03 April’04-Oct’04

Value Value
Finished Leather 1405.84 1578.42
Leather Goods 1263.61 1503.98
Leather Garments 809.05 910.11
Footwear of Leather 1256.9 1444.35
Leather Footwear 433.13 426.03
Saddlery & Harness 129.98 153.14
Total 5298.51 6016.03

1
Source : DGCIS, Ministry of Commerce, Foreign Trade Statistics,Oct’04,
1
DGCIS : Directorate General of Commercial Intelligence and Statistics
46
Major Export Markets : U.S.A, Germany, U.K, Italy, Spain, Hongkong, France,
Netherlands, Portugal, Russia, Denmark, Australia, Canada
Leather Industry in U.P 1
U.P. is one of the most important states in India holding sizeable
population of live stock. Claiming a share of 22% U.P. ranks Ist in case of
Buffalo and 2nd in case of Cattle having a share of 12%. With regards to Goat
and Sheep it has 4th and 6th position respectively. Thus, U.P. has a very strong
raw material base and all types of main raw material for leather industry are
available.
Number of leather and leather products industries in U.P. are to
the tune of approx. 11500 of which Kanpur and Agra are the two famous
production centres in the world. Exports of leather goods in the year 1995-96
was Rs.777.32 crores which was 16.6% of the total exports from India. In 1997-
98, Exports from U.P increased to Rs 805 crores.
Products Range:
1. Leather Footwear - Casual Shoes, Sport Shoes, Moccasins, Safety
Boots, Monk, Oxford, Chappals, Horachi and Sandals
2. Footwear Components - Shoe Uppers, Sandal Uppers, Moccasin Lasted
Uppers, Unit Soles, Insole and Sock Linings
3. Leather Garments - Leather Jackets for Men & Women, Long Coats,
Leather Blouseons, Shirts, Trousers, Motorbike Jackets, Waist Coats,
Skirts and Children Garments
1
Source : www.indianindustry.nic.in
47
4. Leather Goods - Wallets, Purses, Handbags, Belts, Key Chains, Passport
Folders, Spectacle Cases and Hand Gloves, Travelware, Portfolios,
Suitcases, Harness and Saddlery Goods
Leather Footwear and Footwear Components : Agra , Kanpur
Leather Garments and Leather Goods : Agra, Unnao, Gautam Budh Nagar
Kanpur 1 is one of the biggest producer of Leather products and
they are exported in bulk. About 200 tanneries are located in Kanpur. About 50
Tons of air cargo is generated for leather products only and this is sent through
surface transport to New Delhi and from New Delhi it is sent to outside India
through air cargo. Kanpur tanneries specialise in processing hides into heavy
leather (Sole, harness and Industrial leather). This is the only centre in India
where saddlery products are manufactured.
Agra 2 has been the biggest centre for shoe-manufacturing in the
country. Above 1.5 Lacs pairs of shoes per day are manufactured in Agra by
the cottage, small scale and medium scale footwear units. There are about 60
organised footwear units, 3,000 tiny manufactureing units and about 30,000
house holds artisans units. There are a large number of ancillary industries,
supporting footwear industries in Agra. (About 20 small scale machinery
manufacutes and 100 various kinds of footwear component manufactures.)
About 65% of total domestic requirement of shoes in India is supplied from
Agra. There are around 70 export units in Agra in which two golden cards
1
Source : www.indianindustry.nic.in
2
Source : Official website of Agra, URL: http://agra.nic.in
48
holders and three silver card holders units. Total export turnover of Agra is
about Rs. 450 crore.
In Unnao, more than 50 units manufacture leather products. Most
of them are Export Oriented Units.
Apart from these traditional centres for leather and leather
products manufacturing in U.P., Gautam Budh Nagar (NOIDA) has recently
emerged as another major centre especially for leather footwear and leather
garments. NOIDA provides very good infrastructural facilities and establishment
of FDDI1 in NOIDA is expected to promote more footwear.
1
FDDI : Footwear Design and Development Institute
49
5.1(A4) ARTWARE OF BRASS AND OTHER METALS
Export from India

Export of Artware of Brass and other metals constitute about 23% of total
Handicrafts exports from the country. The export of Artware of Brass and other
metals in 2002-03 was Rs.2165.21. In 2003-04, exports of artware increased
by 22 % in rupee terms to Rs. 2642.42 crores. During 2004-05 (April - January
2005), artware of metals exports were Rs. 2789.36 crore.
The Item – wise exports of Artware of Brass and other metal since 1998-99 is
shown in Table no. VII
Table VII : Exports of Artware of Brass and other metals from India
(Rs. Crores)
Item 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05
(upto
Jan’05)
Artware of Brass
and other metal 1497.18 1778.10 1758.90 2165.21 2642.42 2789.36
Source : Ministry of Textiles , Annual Report (Handicraft) - 2004-05
Major Export Markets :
USA, Britain, Canada, Germany and Middle East Asia.
Artware Industry in U.P

Uttar Pradesh is the largest Brass and Copper producing state in
India. In domestic-ware each of the 'lotas' (small water-pots) is known by the
name of its origin, like Etawah, Banaras, Sitapur, etc. The ritual articles are
largely in copper. The art of metalwork was handed down from the Mughal Era
but they still continue to dominate the Indian market for engraved as well as
50
utilitarian brass. Plates, cups, bowls, boxes and coffee pots are engraved with
a range of floral and geometric patterns and these compositions are often inlaid
with brightly coloured Lac or vegetable resin.
Product Range:
Brassware : Brass Utensils, Decoratives, Jewellery, Trophies
Silverware : Huqqa farshi, jewel boxes, trays, bowls, cufflinks,
cigarette holders etc.
Production Procedure 1 :
Raw material used in the manufacture of brass utensils are called “SILLY” and
“GULLY” in the local jargon. “SILLY” and “GULLY” is the mixture of many
metals namely- Copper, Zink, Lead, etc.(in a specified ratio). All these metals
mixed in a big pot called “GHARIA” and heated in a furnace. The molten mix is
then poured into a mold of desired shape & allowed to cool. First & foremost,
the design of the utensil, to be made, is sketched on a piece of a paper
followed by its wooden frame which is later on used to make its metal
prototype. This is known as “MASTER PIECE”.
The expert artisans also known as “DHALLAIYA” prepares mould for the
different brass utensils. Molten metal is poured into these moulds, the utensils
is then taken out for repair and refurbished with utmost care.
These brass utensils are then polished. If needed, exotic design are
made on these polished utensils. These utensils are then ready to be sold in
the domestic market or are exported out to various countries.
In decorative metal ware a variety of pictures can be depicted,
landscapes, war and court scenes, group dances, temples, and deities.
51
There are also combinations of different techniques in a single object like a
lamp with a perforated body and embossed stand. Trays have the sun and the
signs of the Zodiac. For fine engraving scroll pattern is used with delicate
three-petal flowers.
Major Production Centres :
Brassware : Moradabad, Varanasi, Aligarh
Silverware : Lucknow
2
Moradabad is renowned for brass work and has carved
a niche for itself in the handicraft industry through out the world. The modern,
attractive, and artistic brass ware, jewelry and trophies made by skilled artisans
are the main crafts. There are about 600 export units and 5000 industries in the
district. Moradabad exports goods worth Rs. 2200 crore every year. Recently
other products like Iron Sheet Metalwares, Aluminium Artworks have also been
included as per need of the foreign Buyers. These products are very popular in
foreign market and are being exported in thousand of crores every year. Due
to increase of exports and popularity in foreign specially in Europe, America,
Italy and other countries, a large No. of exporters are establishing their units
and started their export. There are 13 EOUs (100% Export Oriented Units) for
Metal Artware in Moradabad.
Table VIII : SSI units and Artisans Sector for metal artware in Moradabad
Number Investment Turnover Employment

(Rs. Lakhs) (Rs. Lakhs)
SSI Sector 4105 1750 95000 18223
Handicrafts / 2650 1375 4210 10100
Artisons
Source : Official Website of Moradabad District
URL : http://moradabad.nic.in/industries.htm
1
Source :www.upportal.com
2
Source : Official website of Moradabad, URL: http://moradabad.nic.in
52
Moradabad is specially noted for its coloured enamelling and
intricate engravings in niello. Engraving in nakashi type is done on tinned
surface where the indentations are from a pattern while the simpler ones are
from memory. Khudai is done on unpolished brass in which the pattern is
traced. A thin coating of lac is given to the article and the pattern traced on it
with a steel pointed pencil and only then engraved. Thereafter the grooves are
filled with lac of different hues. While in the “bidri” work of Bidar style, silver
designs are done only against a dark background, Moradabad makes
decorations in golden colour against a background made white by tin polishing.
Moradabad craftsmen still have the skill to produce some of the finest and most
delicate artworks known as Barik Kam.

1
Varanasi has, since times immemorial, been hailed as a
premier centre for some of the finest handicrafts. Varanasi is known for
Brassware and copperware. Speciality of Varanasi is raising the design in relief
or embossing work. The design is first traced out on the face of the article by
hammering the outline in dots. The articles is then inverted and placed in a
warm bed of sealing wax, resin, mustard oil and brick dust which when cooled
and hardened acts as a cushion to protect it while the repousse work is in
progress. By means of a hammer the craftsman depresses the design along
the dotted line, while elaborating it with various types of blunted chisels. When
turned face up wards, the depressed areas will be seen as raised to varying
heights.
Aligarh is also marching ahead in the field of Brass Artwares and
Brass Building Hardware,. Export are mainly by small scale units. The total
1
53
number of units manufacturing Brass Artware is 65 investing about 64 lakhs. 20
of them are exporting units having annual turnover of Rs 10 crores.
Lucknow is known for its exquisite silverware's with patterns of
hunting scenes, snakes and roses. The Bidri and Zarbuland silver works of
Lucknow find expression on excellent pieces of huqqa farshi, jewel boxes,
trays, bowls, cufflinks, cigarette holders, etc.

54
5.1(A5) PRODUCTS OF WOOD
Export from India 1
Exports of Paper / Wood Products from India during the period April’2003 –
Oct’2003 were of the value Rs. 1334.81Crores. Exports in October 2004 were
Rs. 226.03 crores as against Rs. 195.29 crores in October 2003 i.e exports of
Paper / wood products have increased by about 15.74 %.
The Exports of wooden handicraft items i.e Woodware have been constantly
showing an upward trend. In 1999-2000, the exports of woodware from India
were Rs. 394.05 crores that increased to Rs. 431.88 crores in 2001-02 and to
Rs. 609.07 crores in 2003-04. Exports were of the value Rs. 502.45 crores
during the period April’ 04 to January’ 2005.
Wooden Products Industry in U.P
Woodcraft has given a new definition to home furnishing. The
Matsya Purana says that every home should have a beautifully carved
doorframe in wood as a sign of welcome to visitors. Uttar Pradesh is
particularly known for its intricate Mughal carvings. The Mughal designs such
as the fretwork, jali or the anguri work are very popular in wooden artfacts. In
Uttar Pradesh a variety of wood like sisam, sal, dudhi, ebony and rosewood are
used.
Product Range : Furniture, Decoratives, Trays, Bowls, Boxes, Photo Frames.
1
Source :DGCIS, Ministry of Commerce
55
Saharanpur , Nagina, Aligarh, Lucknow, Gazipur, Mathura
Saharanpur had burgeoned into a big commercial center for and
production is comparatively on a large scale, mostly of modern wooden
furniture and other household items.
One of the Specialities of woodwork in Saharanpur is “THE
NAGHBEL” motif. Naghbel is a zigzag line, which combines the serpentine
pattern with three or four petal flowers on each side of the line.
There are other popular motifs also like Dori, Circles etc. Dori is a
continuous line of flowers; Kutheri Phool is a multi-sided figure, sometimes
enlarged and the pattern laid in a jail to serve as a ventilator. Circles, the swirl
as well as the spiral, are a common motif in low relief. The old tradition of
structural carving still continues. The traditional houses look like the old Kangra
paintings, square carved boxes with picture windows, richly carved doors and
brackets of figures leaning out.
The perforated lacy-work is also done but on small items. Where
big pieces are necessary small lattice frames are made, and then fitted
together. Wood inlay, which developed and flourished with the Mughal
influence, is done with bits of ivory, plastic, horn, metal pieces or other types of
wood into carved surfaces of wooden items.
Nagina is a small centre, doing select work on a small scale. The
Nagina craftsmen work only with ebony. At one time they used to carve on the
steel section of the gun. When the Arms Act put this weapon beyond their
reach, they turned to ebony probably because of its similarity to the metal.
Here the carving is more delicate and meticulous and closer to the tradition.
Toilet and trinket boxes are their specialty.

56
Bareilly (the bamboo town) is famous for Cane Furniture,
wooden furniture and wooden handicrafts.
In Mainpuri, Traditional Wooden footwears (Khandaous) are
made with metal wire inlay work known as tarakashi.
Aligarh, Lucknow, Gazipur, Mathura and a number of other
places also show good woodwork.

57
5.1(A6) GLASS AND CERAMICS
1. GLASS INDUSTRY 1
Exports from India
The Glass Industry comprises of glass containers and hollow
wares, tableware, flat glass (including float glass sheet, figured and wired &
rolled glass), vacuum flasks, refills, laboratory glassware, fibreglass etc.
The Industry is delicensed. Float glass and glass fibres are
classified as high priority items. Items like block glass, glass beads except
industrial beads, simple glass mirrors, glass bangles, glass hollow wares
produced by mouth blown and/or semi-automatic process, glass marbles of
all types and ophthalmic lenses manufactured from glass blanks are
reserved for the small scale sector.
Glass manufacturing units are spread all over India. Export of
Glass & Glassware products has increased from Rs. 3133 million in 1998-
99 to Rs. 7230 million in 2001-02.
Sectorwise Analysis
• Glass Containers & Hollowares : There are 44 units producing glass
containers and hollowares with an estimated capacity of 15 lakh
tonnes per annum. Glass containers are ideal packaging medium,
but is being replaced by alternative packaging materials, like plastic,
aluminium and tetra-pack.
1
Source : www.laghu-udyog.com
58
• Flat Glass : The term flat glass comprises float glass, sheet glass,
figured glass and wired glass. These are further processed into
mirror, toughened glass, laminated glass, double-glazing, etched
glass, glass doors, automotive glass etc. Flat and float glass find
major uses in construction, architectural automotive, mirror and solar
energy industries.
In 1993, the first float glass plant was set up in the country. Since
then new varieties of float and sheet glass capacities have been
added. At present there are 11 Units in the organised Sector with an
estimated production of 8.2 Lacs Tons during 2002-03. The export of
float glass was of the order of Rs.1000 million during 2001-02.
Currently both sheet and float glass are exported to countries in
South Asia, East Asia, South & East Africa etc.
• Vacuum Flask & Refills : There are, at present, 8 manufacturing
units with a total installed capacity of around 36 million numbers per
annum. Production in 1999-00 was 15 million numbers. Indian export
has declined from Rs.467 million in 1998-1999 to Rs.400 million
during 2001-02. Nearly 30% of the present production of refills is
exported to countries like USA, UK, Germany etc.
• Laboratory/Scientific Glassware :This sector comprises items like
neutral glass tubing, laboratory glassware and chemical process
equipment. There are six units in this sector. The installed capacity
of laboratory glassware is 46,600 tonnes per annum. The production
of neutral glass tubing was 19,000 tonnes in 1999-00 as against

59
18,400 tonnes in the previous year. The export of scientific
glassware was Rs.170 million during 2001-02.
• Fibre Glass :The concept of fibre glass was brought to India more
than 3 decades ago. The present demand is about 22,000 MT per
annum as against an installed capacity of 50,000 MT per annum.
The expected growth rate of the industry is 12%. The export of Fibre
glass has increased from Rs.368 million in 1998-99 to Rs.2010
million during 2001-02.
Glass Industry in U.P.
In Uttar Pradesh, the glass industry is concentrated in a belt
running from Bahjoi in Bijnore to Shikohabad in Mainpuri district and thence to
Allahabad district. Firozabad in Uttar Pradesh is known world wide due to its
glass industry. Presently Glass Industry account for a very small share in the
state’s export (less than 1 %) but it has a potential to become an important
export industry as almost all the raw materials (sand, limestone, feldspar, soda
ash, silica, etc.) are available in the region.
Product Range :
Glass Hard wares - For house decoration purpose multi angle , cylindrical
round design hand nobs are manufactured.
Glass Artwares – Include toys, candle-stands , crosses , X-mas trees ,
different fruits ,mini-trees , Images of birds , animals and VIPS and god and
goddess made for Indian and Abroad markets.

60
Glass Domestic-wares – Since 19 Century, Firozabad has been
manufacturing drinking glasses, beer glasses, wine glasses, dinner table sets ,
such as bowls , plates , lemon-sets , pudding sets , etc in attractive cuttings
and charming designs based on modern emblems made in cottage as well as
in factories .
Glass Scienctific and Lab wares – Since last 10 years beakers , flasks,
containers and other scientific wares being manufactured in Firozabad , which
are in demand in colleges , universities and in factory labs .
Glass Automobile wares – Light bulbs , mine battery bulbs and other light and
sight equipments for two and four wheelers.
Glass Street and domestic light wares– For lighting purpose , several artistic
and other utility purposes, many glass items including miniature bulbs and high
power voltage bulbs are produced.
Glass Chandeliers– Since Mughal period, Firozabad is known for producing
different shapes and shades of hanging chandeliers Now many geometrical
designs have been added giving them most modern tastes.
Glass Marriagewares – Even in ancient period, bangles , Kangans and karas
were made for domestics purpose . Now attracting foreign markets also .It is
estimated that four new designs are added every year like pearls , seeps , and
golden shades are being added in glasses .
Production centres : Ferozabad, Mainpuri, Allahabad, Hathras
Ferozabad : It is nicknamed “Suhag Nagri” because it fulfills all most the
demand of bangles karas, kangans and other items of suhagins.

61
About four hundred glass industries are registered in Ferozabad ,these are
making different types of glass products . They are using natural gas instead of
coal. The 50 % productions of these units are exported to different countries.
Now-a-days , Blowing/modeling is done by the “pot regeneratative tank furnish
process” in the factories.
2. CERAMICS INDUSTRY
Exports from India :
Ceramic Industry in India is about 100 years old and by now it
has formed a sizable industrial base. It comprises Ceramic Tiles, Sanitaryware
and Crockery items. The industry is delicensed and classified as high priority
for industrial use. Tableware and allied items namely, dinner sets, tea sets,
cups and saucers, jars, etc in stoneware, semi-vitreous ware and earthen ware
are reserved for the SSI Sector. During last two decades, there has been a
phenomenal growth in the field of technical ceramics to meet specific demands
of industry such as high alumina ceramics, cutting tools and other structural
ceramics.
The Ceramic tiles industry has grown by about 11% per annum
during the last three years. There are at present 14 units in the organised
sector with an installed capacity of 12 lakh MT. It accounts for about 2.5% of
world ceramic tile production. The export was about Rs.143 Crore during 2001-
02. These are exported to East and West Asian countries.
Sanitaryware also is manufactured both in the large and small
sector with variance in type, range, quality and standard. This industry has
been growing by about 5% per annum during the last 2 years. The export was
62
about Rs.850 million during 2001-02. These are presently exported to East and
West Asia, Africa, Europe and Canada.
Potteryware signifying crockery and tableware are produced
both in the large scale and the small scale sector. There are 16 units in the
organised sector with a total installed capacity of 43,000 tonnes per annum.
The export of potteryware during 2001-02 was of the order of Rs.430 million.
The origin of pottery can be traced to the Neolithic period, when coarse hand-
made wares were developed.
Today, in the Indian villages, around 15 lakh potters with
traditional skills are plying their profession. About 95% of them are engaged in
the traditional red or local clay pottery work. The extent of employment of
outsiders in the village pottery activities is about 9%. The rest 91% are potters
family members who assist the potters in various operations, from preparation
of clay to baking the raw products in the kiln.
Ceramics Industry In U.P 1
The Ceramics industry in Uttar Pradesh is dominated by the Potteries.
Product Range :
Water Containers, Tableware, Decoratives
Khurja, Chunar, Rampur, Ajamgarh, Meerut, Hapur, Gorakhpur, Chinhat,
Ghaziabad
63
Product Specialities
Khurja has evolved a style of its own by raising the pattern with
the use of thick slips into a light relief. It also works out its own shades in
warm autumnal colours like orange, brown, and a special light red. Floral
designs in sky-blue are worked against a white background. A specialty of
Khurja is a type of pitcher like a pilgrim's bottle, decorated in relief by a thick
slip. Khurja is also well known for its cheap and tough tableware.
Rampur surahis (water pots) are noted for their uniform green-
blue glazes with plain surfaces, the base being prepared from red clay.
Chunar is also famous and at one time used to glaze its wares
with a brown slip, interspersed by a number of other tints. This tinting
custom seems to have been forgotten, and it now covers its wares with a
dark brown slip or leaves it chalky white.
Excellent water containers are made in other parts of Uttar
Pradesh like Meerut and Hapur, which are both turned and moulded. They
stand out with their striking designs of flowing lines and floral patterns, often
capped by weired shaped spouts.
In Nizamabad, Azamgarh district of U.P., a very special kind of
earthenware is made with dark lustrous body. This sheen is obtained by
dipping it into a solution of clay and vegetable matter, dried, then rubbed
with a vegetable oil, and fired. The vegetable matter evidently gives out a
dark oxide to get that lustrous effect, on which, scintillating silvery
ornamentation is done by incising the pattern on the surface after baking
1
64
and rubbing in mercury and tin. The use of this type of wares is however
limited, for as the clay is fired at a low temperature, it becomes brittle and
cannot hold any liquid.
The traditional items are clay pipe i.e chillum and the water jugs.
A popular item is the magic pot, which is filled up from an aperture from the
bottom. But when the pot is back on its base, the water stays in it and does
not run out. It is usually made in fresh olive green and limpid blue. Many
new tableware items including tea and dinner sets are now made in style
and colour schemes. There are also fancy items in ashtrays, flower vases,
some highly decorated with figures are also made as paperweights, some
looking ferocious and locked in a fierce fight.
Two new centres have come up in Uttar Pradesh. Chinhat in
Lucknow, which once made ordinary domestic articles, now specialises in
glazed items for modern use, mostly tableware; and Mausalia, which also
makes similar glazed ware.
Gorakhpur has villages where clay figures of animals are done
and is famous for its ornately decorated terracotta horse. The potter creates
the basic form by throwing separate pieces on the wheel and then joining
them.
65
5.1(B) NON TRADITIONAL AREAS
5.1(B1) AGRO & PROCESSED FOOD PRODUCTS
Exports from India
The category “Agro & Processed Food Products” comprises a
wide variety of agricultural products covering cereals, pulses, tobacco, spices,
nuts and seeds, oil meals, guargum meals, castor oil, shellac, sugar and
molasses, processed food, meat and meat products etc.
Sectorwise Export of Different Agro Products from India:
1. FoodGrains and Cereals : During the period April’04- Oct’04, the

exports Wheat, Rice ( Other than Basmati) and Other Cereals, in Rupee
terms, have declined as compared to exports in corresponding period in
the year 2003. But on account of tremendous growth in exports of
Pulses (58.7 %) and Basmati Rice (57.5%), overall exports of foodgrains
and cereals have increased by about 8.15 % .
Table IX : Exports of Food Grains and Cereals from India ( Rs. Crores )
Item April’01-Oct’01 April’03-Oct’03 April’04-Oct’04

Qty Value Qty Value Qty Value
(‘000 ton) (‘000 ton) (‘000 ton)
Pulses 79.17 189.03 94.76 199.12 192.82 316.4
Rice(Basmati) 297.49 954.93 327.68 917.88 614.35 1445.61
Rice (other 426.51 493.01 1852.08 1480.03 1154.08 1257.61

than Basmati)
Wheat 1236.08 659.8 2191.5 1220.55 1557.8 1114.89
Other Cereals 90.32 60.13 93.69 61.47 90.95 60.61
Total 2129.57 2356.9 4559.71 3879.05 3610 4195.12
Source : DGCIS, Foreign trade Statistics, Oct’2004

66
2. Fruits and Vegetables : India is the second highest producer of Fruits
and Vegetables in the world. Exports of Fruits and Vegetables from India
has increased by 16.62% during April-Oct’2004 as compared to April-
Oct’2003.
Table X : Exports of Fruits and Vegetables from India (Rs. Crores)
Item April’01-Oct’01 April’03-Oct’03 April’04-Oct’04

Value Value Value
Fruits and 40.08 25.02 32.02

Vegetable
Seeds
Fresh Fruits 198.67 401.18 432.18
Fresh 319.23 374.34 500.33

Vegetables
Processed 124.93 165.33 170.32

Vegetables
Processed Fruit 317.42 184.35 206.57

Juices
Total 1000.33 1150.22 1341.42
Source : DGCIS, Foreign Trade Statistics, Oct’04

3. Tobacco : Exports of Tobacco (unmanufactured) was Rs. 441.92 crores
during April-Oct’03 which increased to Rs. 513.64 crores in April-Oct’04.
During the same period, exports of Tobacco (manufactured) has
increased from Rs. 156.79 crores to Rs. 172.85 crores.
4. Sugar and derivatives : Exports of Sugar and Molasses have
decreased by about 24 % from Rs. 989.72 crores in April - Oct’03 to Rs.
751.98 Crores in April - Oct’04 .Exports of Spirits and Beverages have
also decreased from Rs. 71.81 crores to Rs. 66.81 crores.
5. Oil seeds : Exports of Sesamum seeds were Rs. 288.14 crores during
April – Oct’03. It decreased to Rs. 239.59 crores in 2004. Exports of Oil

67
meals have also registered a decline of 16.24 % and were recorded at
Rs. 524.70 Crores in the period April-Oct’2004. However, Exports of
Groundnuts have increased From Rs. 105.87 crores to 524.70 crores.
6. Live Stock based Products : Exports of Poultry products have
increased by about 25 % from Rs. 116.25 Crores in April-Oct’03 to Rs.
145.04 in April-Oct’04. Exports of Meat and preparations have shown a
negative growth of 16.1% and were recorded at Rs. 490.60 in April-
Oct’04.
The export of Dairy products in the period April 2003-Oct 2003 were
Rs. 82.88 crores. During the period April-October 2004, they were Rs.
159.83 crores recording a tremendous growth of about 92.85 % as
compared to the corresponding period of previous year.
7. Floriculture : Exports of Flowers from India during April’03 to
October’03 were Rs. 115.45 crores. They increased by 5.59 % to Rs.
121.9 crores in the corresponding period of 2004.
Agro Industry in U.P 1
Uttar Pradesh has an agro-based economy. Of the total 29.71
million hectares reporting area of the state, the net cropped areas only
17.48 million hectares, of which 69% is irrigated, 0.10 million hectares is
ravenous where as 2.0 million hectares remains fallow. The gross cropped
area is 26.1 million hectares and the cropping intensity is 149.5%. Seventy
two percent of total work force (1990-91) is dependent on agriculture of
1
Source : Department of Agriculture Exports, Govt. of U.P
68
which 19% are land less labourers. The average size of holding in the state
is 0.90 hectares. There is a preponderance of small and marginal farmers
in the state, comprising 16% and 74% respectively of the total farmers,
however these groups own only 24% and 31% of the land area respectively.
The share of agriculture in the total income of the State has come down to
33% from 42% during the last decade.
Agricultural exports make up 21% of India’s total exports.
However, in Uttar Pradesh the corresponding figures is only 7%. But there
are ample possibilities for export as U.P is among the largest producers of
agricultural commodities within the country. Uttar Pradesh produces 35% of
India's Wheat-production, 15% of Paddy, 40% of Sugarcane, 34% of
Groundnut, 17.5% of Rape-seed, 8% of Fruits and 14% of Vegetables. It
has the unique distinction of producing 4% of world's wheat and is the
leading producer in India for Sugarcane, Vegetables and Potatoes. It also
has the largest livestock population and highest milk production in India,
offering excellent opportunities for setting-up food processing units.
Floriculture, Mushroom and other Horticulture based industries provide
exciting prospects.
Sectorwise Analysis
1. Foodgrains : Uttar Pradesh is the largest food grain producing state in
India, producing about 22% of total food grain. The state produced 25.9
million tones of wheat in 2003-04 which is 35 % of the national
production and highest among all the states. The state accounts for
about 15 % of national rice production and highest yield in the country
for pulses. There is vast potential for setting up units based on

69
agriculture produce. In 1999, there were 3,280 Rice mills, 10,640 Flour
Mills,340 Pulse Mills and 1,960 Bakeries in the state.
Centres for Export Oriented Units :
Wheat : Ghaziabad, Meerut
Rice : Saharanpur, Muzaffarnagar, Gorakhpur
2. Fruits and Vegetables : Uttar Pradesh is the one of the largest
producer in the country of Fruits and Vegetables. The state produces
about 8.5 million tones of fruits, which is 8% of the national produce,
which is highest among all the states. The state is also the largest
producer of potato in the country with 38% of the country’s
production.The production of vegetables in the state is about 14% of the
country’s total production. Fruits like Mangoes(Dushehri, Chausa,
Langra, Fazli, Safeda etc), Guava(Allahabad Safeda, Lucknoe-49),
lemon, Papaya and Grapes are successfully grown in the State.
Major fruits & vegetables processing Centres:
Ghaziabad : Frozen Fruits & Vegetables, Potato Flakes/ Granules
Industry, Integrated Fruits & Vegetables Grading Packaging & Cooling
Centres.
Farrukhabad : Potato based Alcohol , Potato Processing
Mainpuri, Etawah : Onion/Garlic Powder
Bareilly, Saharanpur : Integrated Fruits & Vegetables Grading
Packaging & Cooling Centres,
Bulandshahar : Frozen Fruits & Vegetables

70
3. Tobacco : Uttar Pradesh accounts for the highest yield in the country for
tobacco. Opium is grown heavily. Major Centres for tobacco based
industry are Kanpur and Ghaziabad.
4. Sugar and Derivatives : The State of Uttar Pradesh is the second
largest producer of Sugar in the country, next only to Maharashtra. The
total cultivated area for Sugarcane is 2.38 million hectares producing
1,242 lakh ton/year. There are 117 sugar mills in the state, with total
installed capacity to crush 0.393 million MT of sugarcane per day.The
sugar cane available in UP constitutes 12% sugar, 32% bagasse and
4% of molasses. UP is the Second largest producer of Sugarcane in
India among all the states and accounts for over 40% of Sugarcane
production of the country. About 30% sugarcane in U.P. is used for
manufacturing white sugar. In 2002-03, share of U.P in Total sugar
production of India was 28%.
Major Centres for Sugar Based Industries :
Muzaffarnagar, Meerut and other parts of Western U.P
5. Oil Seeds : U.P is a leading producer of Oil seeds, Mustard Seeds,
Groundnut, Rapeseeds and Sesame seeds. Major oil producing center
is Kanpur.
6. Live Stock based Industries : U.P. has the largest livestock population
in the country. This sector provides employment to 25% of the labour
force and to the majority of female labourers. Uttar Pradesh is the
largest milk producer in the country, with a total milk production of 12.93
million litres. There are 14,592 village level milk producers’co-operatives
societies in the State having a membership of 766 million. There are 32
Milk Processing Plants in cooperative sector having a capacity of 2.286

71
million litres. Also there are 120 dairies in the private sector with a
capacity of 0.91 million litres per day. Considering surplus availability of
the milk in the State, there is considerable scope for setting up of milk
processing projects for manufacture of value added products, including
Lactose, Casien, Whey Protein, Weaning foods, Non-Dairy Codes
Whitener, Baby Food, Butter and Cheese.
Major Live Stock Projects in the state are :
Meat Processing Project – Eastern U.P
Integrated poultry – Meerut, Kanpur Dehat
Frozen Buffallo Meat – Ghaziabad, Gorakhpur
Egg Processing Project – Ghaziabad
Milk Processing Project – Eastern U.P, Ghaziabad, Gautam Budh Nagar
7. Floriculture : The area covered under floriculture in the state is
estimated to be around 2000 hectares and large area of different
districts is devoted for the cultivation of medicinal and aromatic plants.
The cultivation of Menthol at Moradabad, Sambhal, Chandausi and
near-by District are increasing day-by-day. Menthol is exported from
India in several crores. In Saharanpur and Etah, Rose is grown on a
large scale. Several Other Aromatic Plants are grown in Kannauj,
Aligarh and Ettawa.

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5.1(B2) ENGINEERING GOODS AND HARDWARE
Exports from India
During the last 4 decades, the profile of Indian engineering exports has
transformed from a supplier of low value items to developing nations, to a
vibrant exporting nation with more than 30% in the product mix accounted for
by capital goods and machinery and the developed nations accounting for
almost 50% of total exports. The exports, which were during 1956-57 a meager
US $ 10 Million will cross US $ 10.6 Billion by the end of the financial year
2003-04.
Table XI : Exports of Engineering Goods from India (in million $)
Category 2000-01 2001-02 2002-03 2003-04
Capital Goods 1540.00 1644.49 2106.68 2614.00
Primary Iron and Steel & items 2265.98 2104.75 3229.03 4275.00
thereof
Non-ferrous Metal and products 542 577.27 802.58 920
Consumer Durables 1469.81 1395.85 1540.81 2082.00
Total 5817.79 5722.36 7679.1 9891
Source : Engineering Export Promotion Council
USA, China, UAE, UK, Germany, Bangladesh, Srilanka, Nepal, Singapore,
Thailand, Saudi Arabia, Indonesia, Malaysia, Taiwan, Nigeria, Mexico.

73
Engineering and Hardware Industry in Uttar Pradesh
In the post indepence era, owing to the strong mineral base in the
state, number of Heavy Engineering Public Sector Units (PSU) were set up in
the state like Diesel Locomotive Works in Varanasi for Railway Wagons, Bharat
Heavy Electricals Ltd. in Jagdishpur and Hindustan Aeronautic Ltd. in Kanpur
and Lucknow. But due to unrelenting power crisis and lack of infrastructural
facilities, Engineering and Hardware Industry could not grow at a rapid pace.
The Industry account for only 4.2 % share in the total exports of the State. Steel
and steel products being the leading export items from the state. The state had
a 4.5 per cent share in all-India production of Finished Steel 2000-01. Finished
steel production in Uttar Pradesh was 1.09 lakh tonnes in February 2000-01.
Cumulative production growth during April-February 2000-01 was 20.7 per
cent. In the same period, all-India production growth was 11.8 per cent.
In the Light Engineering Goods segment, position of U.P is much
better. In 2003-04, U.P was the fourth largest manufacturer of Office machinery
in the country. A number of light engineering products like Electrical goods,
automobile parts, Electrical goods, Hardware items and other Consumer
Durables are exported from the state.
Products Range :
Railway Wagons, Steel and Steel products , Consumer Durables, Electrical
Goods, Automobile parts, Aluminum Products
Major Production centers : Aligarh , Ghaziabad, Gautam Budh Nagar, Agra,
Muzaffarnagar, Mirzapur, Kanpur, Varanasi, Etawah

74
Aligarh is well known for manufacturing the different type of locks
used in Building doors, Automobiles, V.I.P Suitacases, Wooden & Steel Furniture
etc. Different types of Metal products and Brass Building Hardware are exported
from Aligarh In 1998-99 , exports of Brass building Hardware and Artware from
Aligarh were Rs. 150 Crores. In 1999-00, The exports were Rs. 185 Crores. In
aligarh, about 3460 SSI units are manufacturing Engineering goods and
hardware products. In the year 2000-01, 94 SSI units exported Metal products to
different countries. Their total annual export turnover was Rs 175 crores.
Table XII : SSI units manufacturing Engineering goods / Hardware in Aligarh
S.No. Product No. of Total Investment Employment

Units
(Rs. Crores)
1 Metal Products 1534 1703.77 7277
2 Non Metallic products 19 26.73 98
Lock Industry 1683 2755.33 8137
Building Fittings and 141 163.72 678

Hardware
3 Machinery tools & 17 20.10 87

Parts
5 Electrical Goods 66 59.99 364
Total 3460 4729.64 16641
Source : Official Website of Aligarh, www.aligarh.nic.in
In Ghaziabad, about 67 medium and large scale units with a total
investment of Rs.315.64 crores are engaged in production of engineering
goods. Some of the industrial giants like Bhushan Steel & Strips, Rathi Ispat
Ltd. , Rathi Alloys and Steel, Shri Ram Piston Engineering, Hero Bicycles Pvt.
Ltd., Atlas Bicycles Ltd. , Modern Industries Ltd. (Railway wagons) and Bharat
Electronics Ltd. have established their industrial plants in Ghaziabad district.

75
Table XIII : Medium / Heavy Industries for engineering goods in Ghaziabad
S.No. Product No. of Total Investment Employment

Units (Rs. Crores)
1 Metal Products 15 144.43 1350
2 Basic Metal products 8 30.15 1446
3 Machinery tools & 12 47.93 4015

Parts
4 Transport Equipments 12 20.75 1634
5 Electrical Machinery, 20 72.38 6350

Equipments & Parts
Total 67 315.64 14795
Source : Official Website of Ghaziabad , www. Ghaziabad.nic.in

Kanpur is one of the most important center of engineering goods.
Stock yard of Hindustan Aeronautical Ltd. (HAL)and Steel Authority of India
Ltd. (SAIL) are located in the city. The highest number of ordnance factories
are situated in the city. LML Ltd. is an utstanding name in automobile industry.
In Agra, about 10 medium and Heavy Scale units manufacture

engineering goods. They produce Electric Fans, Pipes, C.I castings, Steel
rollings and Electrical goods.
About 206 small scale units in Etawah manufacture spare parts of

machinery, rolling shutters, steel almirahs, trollys, steel furnitures, etc.
Other important centers are Renukoot in Mirzapur for Aluminium

Products, Muzaffarnagar for Steel Rollings, Meerut for Electrical goods.
Gautam Budh Nagar (NOIDA) is fast developing as hub for

automobile industries with establishment of Toyata, General Motors, Escorts cars
and Motor Cycles.
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5.1(B3) GEMS AND JEWELLERY
Exports from India

Since time immemorial, India has been synonymous with gems and
jewellery India's strength lies in the 2 million highly skilled workforce in the
country in the gem & jewellery sector, out of which 1 million are exclusively
engaged in export production, who virtually carved exclusive fancy stones out of
near gem quality roughs. India accounts for nearly 55% of world net exports of
cut & polished diamonds in value terms, 90% in terms of pieces and 80% by
caratage. India has for long also been a major centre of the coloured gemstone
trade. Nine out of 10 emeralds in the world are polished in India. Exports of
Gems and Jewellery accounts for about 17.4% of India’s total exports during
April to October 2004. The export of Gems and Jewellery during April to October
2004 was valued at Rs. 33,552 crores as compared to Rs. 28267.4 crores during
the corresponding period of last year, showing a growth of 18.7%.
Table XIV : Export of Gems and Jewellery from India

Item 1998-99 1999-00 2000-01 2001-02
Rs. crores Rs. crores Rs. crores Rs. crores
Cut & Polished Diamonds 21074.12 28706.51 28041.81 28346.49
Coloured Gemstones 746.87 884.97 924.2 866.51

Gold Jewellery 3541.7 4693.74 5220.06 5538.14
Pearls 16.33 17.23 11.66 12.59
Non-Gold Jewellery 242.7 209.69 254.88 304.86
Synthetic Stones 10.26 11.43 7.38 11.39
Costume/Fashion Jewellery 22.09 25.65 43.81 48.28
Sales to Foreign Tourist 44.04 38.73 55.81 61.29
Exports of Rough Diamonds 340.21 581.85 713.1 673.01
Net Exports 26038.32 35169.8 35272.71 35862.56
Source : Gems and Jewellery Export Promotion Council
77
Major Export Markets : , Europe, USA, Far East, Middle East
Gems and Jewellery Industry in U.P 1

Exportable Gems and Jewellery from the state mainly consist of
low-priced Costume jewellery and Semi-precious stones. That is why, the
share of Gems and Jewellery in the total exports of the state is only 2.7 % as
compared to a corresponding figure of 17.4 % for India.
Products : Gold Jewellery, Silver Jewellery, Precious and Semi-Precious
stones and products thereof, Costume/Fashion Jewellery
Production Centres : Varanasi, Lucknow, Aligarh, Agra, Lalitpur
Varanasi is known for its traditional Gold Jewellery with
enamalling and Kundan work. Enamelling is the sophisticated type of stone
setting. For this the piece is fixed on a stick of lac and delicate designs of
flowers are engraved on it with acid. Engravings are made in the grooves to
heighten the interplay of the transparent shades, thus enhancing the beauty of
the jewel. The surface is fully burnished by agate; then the enamel colours are
filled in like a miniature painting. The article is thereafter left in the furnace, kept
on a mica plate to prevent direct contact with fire. Colours are applied in the
order of their hardness; those requiring more heat, first and those less, later.
When set, it is rubbed gently with the file and cleaned with lemon or tamarind.
The craftsmen who make the designs are called chiteras, the engravers are
gharias.
Varanasi is noted for a lovely glowing pink done in a different
shade. When it is fired the mingling of the colours produce a wonderful effect.
78
The special pink is however dominant. The colours used are white, black,
yellow, pink, green, red, blue, organge, salmon. Popular items of enamel
jewellery are hasli (a continous circle), small pendants in the shape of flower,
fish, diamond or star, the Kada (heavy bangle) where contrasting colours are
often used, one for the body of the bangle, the other for the carved ends.
Another style for stone setting is the Kundan. The hollows in
which the stones are to be encrusted are filled with gold of high purity. The
setting is done with open lacywork which has an unusual mellow charm.
Generally uncut stones are set in kundan style.
Kundan and enamelling is often combined so that a jewellery
piece really has two equally beautiful surfaces, enamel at the back and
kundan-set gems in front, a feature that often puzzles foreigners.
Lucknow is well known for its Silver jewellery and Enamelling
work. Exquisite Jewellery made up of ivory is also very popular.
Aligarh is known for jewellery made up of Munga (Red coral) and
Moti (pearl). Approximately 550 units with an investment of 16.55 crores ere
engaged in Gems and Jewellery industry. Exports of Munga and Moti and
products thereof from Aligarh in 1998-99 were Rs. 10.25 crores. In 1999-2000,
exports increased to 11.25 crores.
Agra is most famous for inlay work, drawing inspiration from the
superb Taj Mahal. One of the distinguishing characteristics are its
incomparable mosaics. Against the milky white surface are in-set numerous
coloured stones to form a multitude of mosaics, said to contain 42 varieties.
1
79
Various precious and semi-precious stones are used in these mosaics to make
artistic jewellery in Mughal style and other articles like trinket and powder
boxes.
Lac ornaments are manufactured in Lalitpur district. Lac and
glass combine to form a special kind of Costume/Fashion jewellery by
decorating it with spangles or beads. Some are coated with ground tin powder
as paint, then covered with a tinted transparent varnish to give a metallic
glimmer. To silver the jewellery, tin foil is mixed the dry glue, then pounded,
washed and boiled and left to stand until a silvery glue gets formed which is
spread on the lac as varnish. When dry it is rubbed with glass beads.
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5.1(B4) CHEMICALS, PHARMACEUTICALS AND HERBAL PRODUCTS
Exports from India
Chemicals, Pharmaceuticals and Herbal Products registered a
growth of 13.83 (in Rupee terms) during April to October 2004 over the same
period of previous year 2003. Total exports during April-October’2004 were
Rs. 16616.16 crores. All the Sub – groups except Cosmetics and Toiletries
have registered positive growth. Exports of Cosmetics and Toiletries have
declines by 5.92%. Export of Castor Oil had a tremendous growth of about
53.9 % during the period.
Table XV : Exports of Chemicals, Pharmaceuticals and Herbal Products

from India (in Rs. Crores)
Product 2001-02 2002-03 April’ 2003 April’ %

2004 Increase
to Oct’ over April-
2003 to Oct’ Oct’03
2004
Drugs & 9943 11925 8158.38 9183.57 12.57

Pharmaceuticals
Dyes & Dye 2557 3308 2372.45 2796.18 17.86

Intermediates
Inorganic, Organic & 4622 4733 2822.28 3243.30 14.95

Agro chemicals
Cosmetics, 1320 1215 872.39 820.78 (5.92)

Toiletries and
Agarbattis
Castor Oil 624 520 371.24 571.32 53.9
Total 19066 21701 14596.74 16615.16 13.83
Source : Export Statistics, Basic Chemicals, Pharmaceuticals & Cosmetics

Export Promotion Council, www.chemexil.gov.in
Major Export Markets : USA, Germany, China, U.K, Netherlanda, UAE,
Russia, Brazil, Italy, Japan, France, Hongkong.

81
Chemicals, Pharmaceuticals and Herbal Products Industry in U.P
The chemicals industry in U.P is dominated by Fertilizers,
Cement, Organic Chemicals, Paints, Perfumes, Pharmaceuticals and
Ayurvedic Medicines. Uttar Pradesh account for the highest share of 27 per
cent in all-India production for Nitrogenous Fertilizers. Cement output growth of
42% in 2003-04, against the overall industry growth below 6%.
U.P is the second largest producer of sugarcane. There are 41
distilleries for manufacturing alcohal in the State with a capacity of 722.42
million liters and thus, organic chemicals based on alcohal and products thereof
are major exportable product from U.P.
Product Range : Organic Chemicals, Fertilizers, Perfumes, Herbal Medicines
Major Production Centres :
Ghaziabad, Moradabad, Kannauj, Lucknow, Kanpur, Etawah
Ghaziabad is one of the major production center for Chemicals ,
Pharmaceuticals and herbal medicines. There are 36 medium/heavy scale
units, investing about Rs. 200 crores and employing approximately 5000
people.
The main Exportable products from Ghaziabad are Organic
chemicals based on alcohal and products thereof, Castor oil and Herbal
Medicines. Organic Chemicals based on alcohol can be classified into :
• Chemical based on Ethylene
• Chemical based on Acetaldehyde

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• Chemical based on Acetic Acid
• Misc. Chemicals
Different Products manufactured from alcohal based chemicals
are : Adhesives, Detergents, Drugs and Pharmaceuticals, Dyes , Paints and
Varnishes, Perfumes, Plastics , PVC Films, Polypropylene sheets, Plywood
Soaps, Woven Sacks.
.Ghaziabad is also one of the major cultivating center for ayurvedic
products like Aloe vera, Amla, Neem etc. Leading exporter of Herbal
medicines from the district is Dabur India Ltd. Castor oil is also exported from
Ghaziabad.
Kannauj district is famous for essence, flavour, fragrance and
perfume industry. The essence flavour and fragrance of Kannauj district are
famous internationally.
'Attars' or perfumes are also produced in Lucknow from the 19th
century. The Lucknow perfumers experimented and succeeded in making attar
with delicate and lasting fragrances those are made from various aromatic
herbs, spices, sandal oil, musk, essence of flowers, and leaves. The famous
Lucknow fragrances are khus, keora, chameli, zafran and agar.
In Moradabad, about 356 small scale units manufacture chemical
products. Menthol based herbal medicines are also exported from the region.
Kanpur and Etawah have the potential to become a major
production center for chemicals and allied products. Fertilizer and Paints are
the main industries of Kanpur. In Etawah, about 49 units are manufacturing

83
Candles, chalks, boot polish washing soap, ink, tooth powder and Ayurvedic
medicines. These units use wax, colour, glycerine, caustic soda, Caster oil, etc.
as raw material.
Gautam Budh Nagar is also emerging as a center for ayurvedic
medicines and chemicals with more than 100 units manufacturing chemicals,
pharmaceuticals and Herbal Products. Surya Herbals, Pravek Kalp, Flex
Industries are among the major exporters.

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5.1(B5) TOYS AND SPORTS GOODS
Exports from India
Sports goods :
The Indian Sports Goods Industry which exports nearly 60% of its
total domestic output to the sports loving people the world over, has matured
into a globally competitive entity. The Indian sports goods industry is now more
than 100 years old. Whereas Indian sports apparel are well recognised the
world over for their excellence in quality and design, the exports of sports
equipment is a high growth sector. The Indian manufacturers export both
branded and unbranded goods.
Exports of Sports Goods were Rs. 257.43 crores in April –
Oct’2004 recording a marginal decline of 1 % over corresponding period in
2003.
Table XVI : Exports of Sports goods from India (in Rs. Crores)
Product 1999-00 2000-01 April’ 2003 April’ %

to Oct’ 2004 to Increase
2003 Oct’ 2004 over April-
Oct’03
Sports goods 230.69 247.18 260.31 257.43 (1.03 )
Source : Sports Goods Export Promotion Council
Major Export Markets : Europe, U.S.A and Australasia.

85
Toys Industry 1
Currently the estimated exports of toys from India is around Rs. 100
crores. The main category of toys which are being exported from India are Soft Toys
& Dolls which account for 40% of total exports, Plastic Toys, Elec. & Mechanical
Toys (35 %), Games & Puzzles (15 %) , Educational Toys and Others (10 %).
Major Markets :
Indian toys have been internationally accepted and are being consistently exported
to Europe (Germany being our largest market), USA and Middle Eastern Countries.
Worldwide the major markets of toys are USA, EU and Japan.
Sports Goods and Toys Industry in U.P

Uttar Pradesh accounts for about 22 % of total exports of sports
goods and toys from India.
Sports Goods :
Product Range :
1. Inflatable Balls, Protective Equipments, Cricket Equipments, Golf Balls,
Boxing Equipments, General Exercise Equipments, Cricket and Hockey
Balls, T.T equipments, Indoor Games like Carrom Board, Chess, Fishing
Equipment, Sports Badges and insignias, Hockey Sticks, Rackets,
Hammocks, Other Sports Goods.
2. Sports Apparels
Production Centre : Meerut
Meerut is one of the most important production center for
Sports Goods and Equipments. More than 10,000 SSIs and approximately
1
Source : Sports Goods Export Promotion Council, URL:www.hunttech.com/sgepc/
86
1,00,000 experts are manufacturing sports equipments and sports apparels
in the district. The industry is highly labour intensive, providing employment
to the weaker sections of the society as well as to a large number of
women.
A Sports Goods Complex has been established on Delhi road,
Meerut on 5.04 hectare area. There are 51 plots, all have been allotted and
various sports goods units are working there.
Toys
Production Centres : Varanasi, Lucknow , Gautam Budh Nagar
Varanasi in Uttar Pradesh is one of the largest toy producing
centres. The toys are made in wood. The sets are usually quite original and
distinctive, and abstract. The craftsmen mainly make gaily painted animals,
snakes, crocodiles, rats, rabbits, lizards, frogs. The rat may be purple, the
elephant red, the rabbit yellow, snake red and so on according to the fancy of
the craftsman.
Lucknow specialises in toy sets made up of clay and built around
a themes like the people of India showing different faces, costumes, décor;
sadhus of India depicting different sects; musicians of India featuring the variety
of musical instruments; brides of India displaying the wide range of bridal
costumes and ornaments. Though an old craft, the figures are realistically
produced, colourfully turned out, and attractively assembled.
Hanung Toys ( India ) Ltd. in Gautam Budh Nagar is the largest
manufacturer and exporter of soft toys in India having a product range of 8,000
designs and a turnover of 20 million US Dollars.

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5.1(B6) ELECTRONICS AND COMPUTER SOFTWARE
Exports from India
From wealth creation to improving the quality of life for all
sections of the society, IT has been recognized as a key-leveraging factor in
National Development. I.T and Electronics accounts for about 4% of the
global GDP. IT/ Electronics is not only the fastest growing industry worldwide
but also has a profound effect on other industries in increasing productivity,
changing cost structure and even the way we live and work.
Indian Electronics/IT hardware sector has grown at a CAGR of
11.6% during 1991-2002 reaching a production of Rs. 37,000 crores during
the year 2002-03. Growth in production during the VIII Plan (1992-97) and IX
Plan (1997-2002) was15 % and 10.3% respectively. India presently accounts
for about 0.6% of the global Electronics/IT hardware production of US $ 1200
billion (2001). The share of Industry in overall exports of the country was
17.55 in 2002-03.
The performance of the Indian IT sector in International market
was determined by its growth in the following areas:
IT software and services exports : Software and services exports continued
to remain on top of the IT industry’s revenue table. The export-driven software
sector saw major long term projects come to Indian ICT leaders and Indian
companies bagging a larger and larger share of the global outsourced
business. The software export sector logged in a revenue of Rs. 47,500 crore
during 2002-03, a jump of around 30 percent, as compared to the previous
year.
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IT-enabled services : NASSCOM estimates indicate that during 2002-03, the
IT-enabled services segment grew by a phenomenal 65 percent. Revenues
from this sector rose from around Rs. 71 billion in 2001-02 to approximately
Rs. 117 billion in 2002-03.
Table XVII : Export of Electronics and Software from India ( Rs. Crores)
A. Electronic Hardware 1999-00 2000-01 2001-02 2002-03
Consumer Electronics 450 620 700 750
Telecom Equipments & cables 180 580 150 500
Instruments 170 560 950 1400
Electronic Component 1200 1828 2200 2400
Computer Hardware 600 1200 1800 500
Total (A) 2,600 4,788 5,800 5,600
B. Computer Software & Services 17,300 27,500 36,500 46,500
Total of A & B 19,900 32,288 42,300 52,100
Source : Electronics and Software Export Promotion Council, Export Statistics
USA, UK, Germany, Singapore, Japan, Netherland, Belgium, Canada,
Australia, China
Electronics and Computer Software Industry in U.P 1
In the year 2003-04, Uttar Pradesh was the Fourth largest
software exporter (Rs 45 billion) in the country. It has managed to keep up
with the National growth rate with a growth rate of about 25% (export turnover
89
of approximately Rs. 2000 crores during 2001-02 and around Rs. 2500 crores
during 2002-03). The growth of I.T export has mainly been due to rise in
exports from the software export houses.
Software is used in Telecommunication; IT enabled services,
electronics and entertainment, defence, designing, trade and commerce,
medical services etc. They are also used in production and manufacturing
process in all the industries.
Product Range :
Electronic Goods : CD Recordables, Connectors, Colour TVs, UPS, Electronic
Components NES, Floppy diskettes, Head Stacks, Linear ultrasound Scanners,
Memory Cards, Medical Instruments & appliance, Other Semiconductor Devices
Switching Equipments, Picture Tubes, P A Systems, Resistors, Solar
Photovoltaic Cells, SMPs, Unpopulated printed circuit boards.
Software
1. IT software and services exports : Custom Application development
and maintenance, Applications outsourcing, IT enabled services, R&D
services
2. IT enabled Services : Customer care, Web sales/marketing, Billing
services, Database marketing, Accounting, Transaction document
management, Transcription, Telesales/telemarketing, Tax processing,
Benefits administration, HR hiring/administration, Biotech research.
Important Centres : Gautambudh Nagar, Kanpur, Allahabad, Lucknow,
Agra, Varanasi,
1
Source : Department of Information Technology and Electronics, Govt. of U.P
90
Gautam Budh Nagar (NOIDA) one of the most important
Infotech City of India, replete with leading Indian corporate & multinational
business houses like Samsung India electronics, LG electronics, Videocon
Electronics, TCS, Techspan Inc. HCL Perot Systems Ltd. , Adobe
Systems, Polaris, Moser Baer India, R Systems, Nucleus Software
Exports, Quadrangle, IT & T, I-energiser, EXL Services, Convergys and
many more.
The NOIDA Software Technology Park (STP) ranks second in
the country in terms of export turnover and the Infotech Park (ITP) on 100
acres of land with state-of-the-art infrastructure, housing about 152-200 units
make NOIDA the epicenter of IT Revolution. Following the significant
contribution made by the software Technology Park, Noida , Uttar Pradesh
has exported software, worth Rs. 4500 crores.
NOIDA Export Processing Zone (NEPZ), a 100% export
oriented unit and the only land locked export processing zone in the country,
recorded a turnover of Rs. 846.20 Crores in the current year, with Electronics
and Computer Software Industry holding the majority share.
Another important center of Electronics industry is Kanpur. The
State of Uttar Pradesh is using the facilities for research in the world famous
I.I.T., Kanpur to develop Kanpur as ‘Cyber City’. UPSIDC has established
Software Technology Park at its multi-storeyed office Complex in association
with IIT, Kanpur to promote export of computer software from U.P.
A software Technology park has also been established in
Lucknow in collaboration with STPI of India, to provide necessary
infrastructure to the industry and a training ground for IT professionals.

91
An Indian Institute of Information Technology (IIIT) has been set
up in Allahabad for imparting IT education. U.P. Government has given land
free of cost.
In addition to the already established STP at NOIDA, Lucknow
and Kanpur state-of-art STP’s and Infoparks are also being established at
Agra, Varanasi, Moradabad, Allahabad and Meerut . The State is to provide
all the necessary support to I.T. and Electronics Hardware industry.

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5.1 ( C ) SERVICES
5.1 ( C1 ) TOURISM
Tourism in India
India has significant potential for becoming a major global tourist

destination. Recognizing the vast potential of the tourism sector the
government has given tourism the status of an industry. Travel and tourism is
the second highest foreign exchange earner for India. Incoming foreign tourist
arrivals have shown a 6% compounded annual growth rate over the last 10
years. Tourist arrivals in India were 2.12 million In 1995, 2.48 million in 1999
,2.64 million in 2000, 2.75 million in 2001 and 2.36 million in 2002.
The first four months of the current calendar year 2005 have
shown a healthy growth of 18.3% in foreign tourists arrivals. This was against
the growth of 22.5% achieved in the same period in 2004 over the figures of
2003. During Jan-April 2005, Foreign tourist arrivals were 13,28,094 as against
a corresponding figure of 11,22898 for Jan-April 2004. Foreign Exchange
earnings have increased by 27.2 % from Rs.7136 Crores in Jan-april’04 to Rs.
9079 crores in Jan-Apr’05.

Table XVIII : Foreign Tourist Arrivals and Foreign Exchange
Earnings for India
2001-02 2002-03 2003-04 2004-05
Foreign tourists Arrivals 24,28,383 24,53,622 28,78,638 35,37,630
%age change 1.0 % 17.3 % 22.9 %
Forex Earnings 13880 14641 18058 23469

Rs. (Crores)
%age Change 5.5 % 23.3 % 30 %
Source : Tourism Statistics for India, FHRAI 1 magazine, May-June’05
1
FHRAI : Federation of Hotels and Restaurants Association of India
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Tourism in Uttar Pradesh 1
Uttar Pradesh is one of the top tourist destinations in India, with
almost 25% of the all-India foreign tourists visiting Uttar Pradesh i.e Every
fourth tourist who comes to India visits U.P. The state has vast potential for
tourism due to its rich heritage. In the year 2000, Buddhist circuit was visited In
the year 2003-2004,the total tourist arrival in U.P. was more than 71 million. Of
this, more than 1.0 million were foreign tourists. Agra was visited by more than
8 million domestic and 8,25,000 foreign tourists last year followed by Varanasi,
Lucknow, Allahabad, Vrindaban and Mathura. About 3.73 lac foreign tourists
arrive in the U.P Buddhist Circuit.
To promote tourism , Govt of U.P has framed a ‘Tourism
Development Policy’ under which, seven 'Thrust Circuits' have been identified
and earmarked for growth in tourism and tourism infrastructure. These thrust
circuits are as following :
1. BUDDHIST CIRCUIT
Uttar Pradesh is dotted with monuments and relics, legends and
history extolling the virtues of this glorious religion.
Places of Interest
• Piprahwa (old Kapilvastu): where the Buddha spent his youth in
palaces and riches as prince Siddhartha
• Sarnath : where he preached his first sermon;
• Sravasti and Kaushambi : where he preached regularly;
1
source : Department of Tourism, Govt. of U.P.
94
• Sankisa : where Buddha descended from Heaven along with Brahma
and Devraj Indra
• Kushinagar : where he finally attained 'Mahaparinirvana'.
2. BUNDELKHAND CIRCUIT
Bundelkhand - A land steeped in history and fables, bravery and
martyrdom, battles and religion. The entire region echoes with the legacies of a
chequered past. The entire Bundelkhand region hides within its folds several
destinations, each waiting to be discovered.
Places of Interest
• Jhansi : Jhansi is ramparts and reminiscences, a city immortalized
forever by the bravery of its Queen. The Jhansi fort and the exquisite
Rani Mahal... all wonderful legacies of a golden past.
• Chitrakoot : It is a symbol of faith. A land touched by the feet of Lord
Ram, who sought solitude in its forests during His exile.
• Deogarh : A religious center with the exquisite Draticcotar (Vishnu)
temple, 31 ornate Jain temples and ancient shrines.
• Mahoba : It was the seat of power of the mighty Chandelas. The city
is still alive to the tales of valour of AIha and Udal who fought to save
the honor of the city.
• Kalinjar : The fort of Kalinjar still echoes to the roar of cannons of
Sher Shah Suri.

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3. BRIJ (AGRA - MATHURA) CIRCUIT
Taj Mahal - a monument immortalized by love is the highlight
of a visit to this historic city. But, Agra region offers so much more than the
Taj: Agra Fort; Itmad-Ud-Daulah's tomb; Ram Bagh; Sikandra;
Maryam's Tomb; Fatehpur Sikri and Lord Krishna's own land - Braj
Bhoomi: Mathura, Vrindavan, Barsana, Gokul, Nandgaon, etc.
4. ECO TOURISM CIRCUIT
The Dudhwa National Park in Lakhimpur Kheri district of Uttar
Pradesh is also home to a large number of rare and endangered species
including the tiger, leopard, swamp deer, hispid hare, Bengal florican and
the Indian rhino. The skies of Uttar Pradesh are alive with birds of
innumerable hues. The many bird sanctuaries adorn this state house apart
from the Indian varieties, hundreds of different migratory birds.. starting from
the Siberian crane to the spotted bill.
5. AWADH CIRCUIT
Lucknow - A city symbolizing the art of gracious living, Fabled
monuments steeped in history, 'adab' and the legendary hospitality. 'Dum
Pukht' - world renowned art of slow cooking. Lucknow Gharana - which has
produced world acclaimed classical dancers, vocalists and musicians.
Classical handicrafts. And exquisite evenings. Lucknow is all this and more.
It's a bustling metropolis with modern hotels, ritzy shopping arcades and
exotic eating joints. Truly, there are many facets to this charming city which
retains much of its old-world charm. Attractions: The Residency; Bara
Imambara; Rumi Darwaza; Shahnazaf Imambara; Picture Gallery;

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Chattar Manzil; Kukrail Crocodile Farm, Nawabganj Bird Sanctuary
and Dudhwa National Park; Bittoor, Neemsar and Naimisharanya.
6. VINDHYA CIRCUIT
The Vindhyachal mountains are amongst the oldest in the world.
This region boasts of rock cave paintings, tribles, the world famous
Mirzapur carpets, various revered Shakti shrines and a string of forts
which gave birth to the legends of Chandrakanta. This area is best in the
late monsoons when the exuberant waterfalls come to life.
7. WATER CRUISE CIRCUIT
Infrastructure and water facilities are being developed in water
cruise circuit area - Lucknow, Allahabad, Varanasi, Chunar, Baruasagar
etc.
Ganga Water Rally - A three days long excitement packed event
being regularly organised from 6th to 8th February every year from
Allahabad to Varanasi.
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5.2 BOTTLENECKS IN EXPORTS DEVELOPMENT
Political Instability
Political environment in Uttar Pradesh is characterized by
frequent changes in government, unsteady coalitions, pressure tactics,
uncertain policies and weak governance. Seeds of Instability started creeping
into the system in early eighties, became the order of the day after the collapse
of the Congress and non-congress regimes taking over the state. More than ten
Chief Ministers in fifteen years (between 1989 and 2004) explain almost
everything.
Sluggish Economic Growth :
In the past few years, the economic growth of Uttar Pradesh is
very low. In 2003-04, GDP growth rate was 5.9 % as against agrowth rate of 9
% for India. In 2002-03, GDP growth rate for U.P was only 0.1 %. Per capita
income in UP is the third lowest in the country. Fiscal deficit increased from
5.6% of GSDP in 2000-01 to 6.8% in 2002-03. The State borrowing as a ratio
of GSDP increased from 40% in 2000-01 to 48% in 2002-03 anf further to 51%
in 2003-04. Debt service cost has jumped from 37% of the revenue receipts in
2000-01 to 53% in 2003-04. 88% of the State's total revenue receipts are spent
on payment of salaries and pension to the employees and on interest.
Though the increase in revenue expenditure is an important reason for
nonavailability of funds for much needed infrastructure, low levels of revenue
generation are also equally responsible for the continuing fiscal crisis of the
State.
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Lack of Infrastructure :
Inadequate attention to the creation of infrastructural facilities in the past can be
said to be a crucial impediment in the efforts of the State to realise its full
economic and industrial potential with which it is abundantly endowed. Land,
Power, Telecommunication, Air and Road transport are the most important
components of Infrastructure .
Continuous and high quality power supply is extremely important
for the development of industries. Due to shortage of power in the State, it’s
availability to industrial units has been uncertain in the past. Uttar Pradesh
suffers from a chronic shortage of power. Installed capacity has greatly
increased since 1951, but the gap between supply and demand has remained
wide.
The State has an extensive network of Roads and Bridges.
During last five years the expansion of the road system in Uttar Pradesh has
been at par with the National Average. However, vital gaps still exist which
need to be removed.
Low Industrial Investment : :
Industrial Sector contributes only 20 per cent of the Net State
Domestic Product and its share in the employment is only 8 % of the total
workforce. The rate of growth of Industry in the recent past, has varied between
2 % to 6% annually. Main reasons for comparatively sparse growth of industry
in the state are irregular and costly power supply, law and order problems,
pressure tactics and repression let loose by local influential people,
administrative delays and uncertain policies.

99
Low level of FDI Investments
Due to the negative image of the state, insufficient and low grade
infrastructure facility and procedural delays, Multinationals hesitate to invest in
the state.
Lack of Entrepreneurship :
Uttar Pradesh has not been able to fully utilise its productive
potential because of the inadequate development of entrepreneurship.
High cost of Transportation
As Uttar Pradesh is a landlocked state, the costs incurred in taking
goods to the ports is very high and it adversely affects cost competitiveness of
its products in international market.
Lack of Modernization :
Most of the exportable products from U.P. are Handicraft Items
using traditional techniques of production which leads to low level of output and
substandard quality of products.
Though there are number of research and technical institutes in
the state, the pace of product innovations and up gradations is fairly slow.
Non –Implementation of Policy measures
Due to frequent changes in government, Bureaucratic delays and
Lack of administrative controls, policy measured could not be implemented.

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Lack of International Exposure
Marketing of goods produced, is one of the major problems faced
by the Small Industries in U.P. Although the state administration provide lot of
assistance for participation in foreign trade fairs and exhibitions, the
beaurocarcy discharges its duty without any zeal and the participation remains
very low.
Hostile International Environment
Exports of Handicraft products viz. Carpets and brassware
suffered a setback on account of adverse publicity on the child labour issue.

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5.3 EXPORT INITIATIVE IN UTTAR PRADESH
5.3.1 ORGANISATIONAL SETUP
• Export Promotion Bureau :
Export Promotion Bureau was established by the Govt. of U.P. in
the year 1999 for promoting exports from the State of U.P. The Bureau is
headed by Export Commissioner who is also Secretary, Small Scale
Industries and Export Promotion for the State of U.P. Export Promotion
Bureau office is located in Lucknow.
The Bureau assists exporters in export procedure, various
facilities and assistance offered by the State and Central Agencies. It also
ensures follow-up of export policy matters and miscellaneous problems of
exporters. The work of the Bureau at field level is executed through Export
Promotion Cells set up in District Industries Centres at selected export
production centres. The Cells are set up in the following DICs: Jhansi,
Moradabad, Aligarh, Firozabad, Kanpur, Meerut, Gorakhpur, Varanasi,
Agra, Lucknow, Saharanpur, Bhadohi, Gautambudh Nagar, Bareilly &
Bulandshahar.
• Udyog Bandhu :
Udyog Bandhu is an autonomous body set up by the Government
of Uttar Pradesh to provide Single Window Assistance to the Industries in
Uttar Pradesh. It has its headquarters at Lucknow and it operates at District,
Divisional and State Level. Udyog Bandhu acts as an effective catalyst
facilitating growth of industries in the State. It is the co-ordination agency
between entrepreneurs and government.

102
• UP State Industrial Corporation Ltd. (UPSIDC) :

The role of UPSIDC is to provide industry related infrastructure.
The Corporation has so far developed 134 industrial areas in 58 districts of
the state. More than 5000 industrial units in the large, medium and small
scale have been set up with an estimated investment of over Rs. 17,5000
million. UPSIDC has developed a host of technology parks, export
promotion parks and industrial townships. It is all set to develop a series of
new industrial areas, integrated townships and technology parks at
prominent locations for promoting industries such as Agro/Food Processing,
Information Technology, Apparel, Chemicals, Handicrafts, Gems/Jewellery,
Electronics, Textiles, Plastics, Leather and Leather Products.
5.3.2 INDUSTRIAL INFRASTRUCTURE :
1. NOIDA Export Processing Zone (NEPZ) :
The zone set-up by the Ministry of Commerce, in 1985 for
100% Export-oriented Units is one of the seven zones in the country and
the only one located off-the-sea coast. About 280 acres of land is being
developed for the zone. More than 109 units are functioning. About 179
projects have been sanctioned. The export from this area is more than Rs.
846.20 crores. The type of industries include electronics, textiles,
engineering , computer software etc. Facilities in the NEPZ include digital
electronic telephone exchange on site, power sub-station with assured
power supply, on site customs clearance and warehouse with clearing and
forwarding facilities besides two Nationalised Banks and Post Office.

103
2. Software Technology Parks
Software Technology Parks have been established at Gautam
Budh Nagar (NOIDA), Kanpur and Lucknow. STPs act as 100% export-
oriented resource centre for the member computer software exporting units
by offering general infrastructure faciltities and high speed data
communication facility like central air-conditioning, elevators, continuous
power supply (with back up), and other common facilities such as xerox,
fax, telephone, conferencing, auditorium etc.
3. Special Economic Zones (SEZ) :
a. Purva Economic Zone :
This Zone is proposed between Varanasi and Bhadohi
close to Babatpur International Airport at Varanasi. About 200 hectares
area has been issued. The Zone aims at investment up to Rs. 2 - 3,000
Crs. i.e. US$ 0.5 - 0 .75 billion in first 5 years.
b. Kanpur Special Economic Zone :
The proposed site for Kanpur Economic Zone would have
proximity to the 'Golden Quadrangle', the NH - 24, and to the under
construction Barrage on the river Ganga. Kanpur Economic Zone aims
at investment up to Rs. 4 - 5,000 Crs. i.e. US$ 1 - 1.2 billion in first 5
years.
c. Taj Economic Zone :
Jewar, is a town located close to Greater NOIDA and to
the alignment of the proposed Taj Express way. Strategically located
in the National Capital Region, considered the most prosperous belt

104
in the country. Only 75 km from New Delhi, the National Capital. Only
SEZ in the country to envisage a Hub Airport in it. Taj Economic
Zone aims at investment up to Rs. 8 - 10,000 Crs. i.e. US$ 2.5 - 5
billion in first 5 years.
4. Other Projects :
• The Taj International Airport and Aviation Hub :
The Taj International Airport & Aviation Hub shall be the
first Aviation Hub in Northern and Central India. It is proposed to be
located north of Jewar in Distt. Gautam Buddha Nagar close to its
border with Aligarh. It shall have not only a world class International
Airport but also have the unique world class facilities for Airliners
maintenance, International Cargo handling including customs
clearance, specialised facilities for handling perishables like flowers,
agri exports etc., duty free shops, entertainment centres, hotels etc. It
is expected to come up in an area of about 1000 hectares within the
Taj Economic Zone.
• Development of Industrial Corridors
"Seven Corridors" - having distinctive industrial potential,
have been identified for development in phases in various regions of
the State. In the first phase the following corridors are proposed:
a) NOIDA/Greater NOIDA Ghaziabad/Gautam Buddha
Nagar.
b) Meerut/ Moradabad
c) Agra/ Aligarh/ Ferozabad/ Khurja (Bulandshahr)/ Kosi
(Mathura)
105
d) Lucknow/Kanpur
e) Allahabad/Bhadohi/Varanasi/Mirzapur
f) Gorakhpur/Basti/Deoria
g) Jhansi/Lalitpur
• Tronica City at Ghaziabad
The Integrated Industrial Township of, the Rs. 2,000 million
plus project sprawls over nearly 1,300 acres of prime location and
just 2 km from Delhi border in the North East of Delhi in District
Ghaziabad. The city will have interspersed residential sector on 600
acres of land, an equal area for industrial purpose while remaining
area is reserved for commercial and institutional activities.
• Apparel Park in Ghaziabad :
Apparel park is to be set up with assistance from central
government in tronica city near Delhi in150 acres area.
• Integrated Agro Park in Ghaziabad
With a view to provide ultra-modern infrastructure facilties
for agro-based projects, Integrated Agro Park at Masuri-Gulawati in
district Ghaziabad on 400 acres of land, with a cost of Rs. 1,000
million is being developed.
• Export Promotion Industrial Park at Greater Noida
An EPIP (Export Promotion Industrial Park) at
Surajpur, Greater Noida Region, spread over 200 acres of land
with top class infrastructure. The EPIP will be free from power
cuts, owing to the uninterrupted power supply from Noida Power
Company (A private sector company of the RPG Group).

106
• Export Promotion Industrial Park at Varanasi
An Export Promotion Industrial Park at Varanasi is
planned to be established with high quality of infrastrucuture
facilities. This EPIP will be located near Varanasi at a distance of
12 km from International Airport.The units having export potential
of minimum 33% would be established there.
• Chemical Complex in Bulandshahar
A Chemical Complex at Khurja in district
Bulandshahar, is being developed over 1,200 acres of land with
an estimated cost of approximately Rs. 700 million.
• Automobile Complex at Lucknow
An Automobile Complex in Lucknow, over an area
of 500 acres with an estimated project cost of Rs. 350 million with
all the necessary and support of industrial infrastructure.
• Leather Technology Park near Kanpur
A Leather Technology Park near Kanpur at Banthar,
Unnao, is to be established for the setting up of tanneries for
manufacture of Leather goods.Land acquisition of approximate
300 acres has been taken up for this Park.
• . New Industrial Area In Moradabad
About 450 Acres of land has been acquired to develop
New Industrial Area for Export Oriented Units at Pakbara to
Dingarpur Road.
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5.3.3 PROMOTIONAL POLICIES
1. Export Policy :
In order to facilitate Exports, the State had formulated an Export
Policy in 1998 which provided for up-gradation of infrastructure,
improvement of technology and infusion of superior skills so as provide a
competitive edge to the local industry in the International Market. Some of
the policy measures undertaken were :
• Priority to Infrastructure Facilities at export centers, thereby providing
: Uninterrupted supply of quality power, Modern telecom facilities,
Rail-Air transport facilities, Convenient road network, Pollution control
system etc.
• Setting up of Export Parks at Noida and Agra .
• Trade Centres equipped with all trade-related facilities for display of
goods, conduct of buyer-seller meets etc., to be set up at
Noida/Greater NOIDA.
• Warehousing and Container Facilities
• ICD/dry port facilities at Meerut,Gautam Buddha Nagar, Mirzapur,
Saharanpur, Varanasi, Moradabad, Kanpur, Agra.
• Air Cargo facility has been provided at Varanasi and Lucknow.
• Facilities for exhibitions, sales, workshops and conferences has been
created at major export centres. Assistance will also be provided for
establishment of common effluent treatment plants and other technical
facilities/services.
• Internet Connectivity for obtaining market information.

108
• Trade Tax has been exempted on raw material and packing material
used in export production.
• Abolition of 'Mandi Cess' in respect of raw materials, for export
production.
• Export Freight Subsidy : U.P. is a land-locked State. As a result, the
cost of transport of export cargo to the ports effects their
competitiveness adversely. In order to offset this disadvantage the
State Government extends assistance to subsidize/rationalise export
freight costs in respect of movements of goods from all state ICDS and
Air Cargo complexes(Agro & Perishable item).
• Market Development Assistance for for small exporters to assist for the
conduct of market surveys, product development and participation in
international trade fairs.
• Opportunities has been provided for exhibiting export products at
national/international fairs and explore new markets.
• Co-ordination with banks has been undertaken for access to soft loans
for export productions.
• Training Programmes are being organized for skill upgradation and
entrepreneurship development in order to enhance quality and
productivity; provide more information on new designs and modern
techniques; and assist in product diversification.
• A large scale publicity campaign including presentation of correct
information, and contesting of adverse publicity, on the child labour
issue raised by importing countries, has been taken up by the state.

109
2. Tourism Policy:
Revised Tourism Policy has been announced to stress on
greater private participation in promoting tourism and generating avenue
for employment. The Department of Tourism has declared 2004 - 05 as
`International Year of the Taj'. to celebrate 350 years of Taj Mahal by
organising several tourism festivals in the year 2005. International Airport
is being planned at Kushi nagar.
3. Other Policies :
• Industrial & Service Sector Investment Policy – 2004 : to promote the
participation of the Private Sector in the industrial and Service Sector of
the State
• Agriculture Policy-1999 : Its priorities are increase in crop area and
crop intensity, improvement in quality of seeds, soil-testing and
fertilizers, use of bio-fertilizers, promotion of horticulture, animal
husbandry, poultry farming, pisciculture, dairy, silk cocoon breeding,
floriculture and cane and sugar industry.
• IT Policy-2004 : for Making Software, Electronics/IT Hardware and
ITS/ITES Sectors globally competitive and thereby increasing export
earnings.
• Food Processing Policy – 2004 : Encourage investment in the sector
and to provide a ‘market’ focus to the entire range of activities involved
in food Processing.
• Bio-Tech Policy – 2004
• Sugar Policy – 2004
• Power Policy – 2004

110
5.3.4 OTHER INITIATIVES :
Infrastructure Development
¾ Rs 300 crore to be spent on laying of new roads and maintaining
existing roads.
¾ Infrastructure development fund with Rs 200 crore under industrial and
service sector investment policy, 2004.
¾ Proposal to improve roads in rural areas at a cost of Rs 63 crore.
¾ Proposal to hand over the link roads in villages under 14 developmental
blocks. The PWD and the State Road Corporation to provide the funds
for these.
¾ Hi-tech airport at Saifai. Around Rs 44.68 crores would be spent on the
project, to be completed within two years.
¾ World’s largest gas-based power plant involving a total investment of
Rs 100 billion and generating capacity of 3,500 MW by Reliance
Industries Ltd.
¾ Electrification of the 40,000 villages of Uttar Pradesh by year 2009.
¾ Energy parks in various districts to create awareness among the people
about alternative energy sources. The main State Park will be set up at
Allahabad and one such district-level energy park would be established
in Lucknow..
Research and Development
The State has 26 engineering colleges and No Objection Certificates have been
issued to another 18 proposed private colleges. There are 71 Polytechnics and

111
202 Industrial Training Institutes spread all over the State imparting training to
thousands of industrial workers and supervisors.
Major research institutes located in the state include :
1. Fragrance & Flavour Development Centre ( FFDC), Kannauj
2. Metal Handicrafts Service Centre at Moradabad
3. Central Drug Research Institute, Lucknow
4. Central Institute of Medicinal and Aromatic Plants, Lucknow
5. Industrial Toxicology Research Centre, Lucknow
6. Central Food Technology Research Institute
7. Harcourt Butler Technological Institute, Kanpur
8. National Botanical Research Institute, Lucknow
9. Glass Research Institute
10. Footwear Design and development Centre (FDDC), NOIDA
11. Indian Institute of Sugar Research, Lucknow
12. Indian Institute of Technology (IIT), Kanpur
13. Indian Institute of Management (IIM), Lucknow
14. Indian Institute of Information Technology, Allahabad

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6.1 ANALYSIS
EXPORT SCENARIO OF U.P – 2003 - 04
ITEM Exports from Exports From Share of U.P in

India U.P India’s Exports
2003-04 2003-04
A. TRADITIONAL PRODUCTS
1. Hand Knotted Carpets & Durries 2,300.04 2,152.76 93.6 %

2. Textiles and Garments 53,341.50 1,206.85 2.26 %
3. Leather & Leather products 11,032.06 1,648.25 14.94 %
4. Artware of Brass 2,642.42 2,196.76 83.13 %
5. Wood Products 609.07 65.11 10.7%
6. Glass & Ceramics 2,821.16 42.97 1.52 %
TOTAL (A) 72,746.25 7,312.70 10.05

B. NON TRADITIONAL PRODUCTS
1. Agro Products 20,232.21 1,394.22 6.9 %

2. Engineering Goods & Hardware 42,187.85 523.67 1.24 %
3. Gems and Jewellery 37,092.25 260.43 0.7 %
4. Chemicals, Pharma & Herbal
24,695.74 92.5 0.37 %
Products
5. Sports Goods & Toys 304.5 69.01 22.66 %
6. Electronics & Software 59,500 4500 7.56 %
TOTAL (B) 18,4012.55 6,839.83 3.72 %

C. TOURISM 18,058 4,768.67 26.41 %
D. OTHER PRODUCTS / SERVICES 81,323.23 2091.06 2.57 %
TOTAL (A+B+C+D) 3,56,140.03 21,012.26 5.9 %
Compendium of Export statistics from Export promotion councils, Govt of India and
Export Promotion Bureau, Govt. of U.P
113
I. U.P’S EXPORT POTENTIAL : FACTOR WISE ANALYSIS
S. No. Criterion Rating

1. Political and Administrative Environment (E)
2. Resource Availability
(i) Natural (A)
(ii) Economic / Financial (D)
(iii) Human (B)
3. Infrastructure
(i) Basic
(a) Land Availability (B)
(b) Transportation (C)
(c) Power (E)
(d) Communication (A)
(ii) Industrial
(Industrial estates, SEZ, EPZ) (C)
4. Investment
(i) Domestic (D)
(ii) FDI (D)
5. Research & Development (E)
6. International Exposure for Sales (E)
Promotion
7. Policy Implementation (C)
8. Technology Upgradation (C)
9. Cost Competitiveness (D)
10. Range of Exportable Products (C)
Rating Abbreviations
(A) : Excellent
(B) : Very Good
(C) : Good
(D) : Average
(E) : Poor
114
II. PRODUCTWISE EXPORT POTENTIAL ANALYSIS
PRODUCT Availability Technical Infrastructure Research & Export

of Expertise Development Potential
Resources
Traditional Products
1. Hand Knotted carpets & (A) (A) (B) (D) (B)
Durries
2. Textiles & Garments (A) (A) (C) (E) (C)
3. Leather & Leather Products (A) (C) (C) (C) (C)
4. Artware of Brass (A) (A) (B) (D) (B)
5. Products of Wood (C) (A) (C) (D) (C)
6. Glass & Ceramics (B) (B) (E) (D) (D)
Non Traditional Products
1 Agro Products (A) (C) (C) (B) (B)
2. Engineering Goods & (B) (D) (D) (D) (D)
Hardware
3. Gems and Jewellery (E) (C) (E) (E) (E)
4. Chemicals, (B) (D) (D) (E) (D)
Pharmaceuticals & Herbal
Products (B) (A) (B) (C) (B)
5. Sports Goods & Toys (B) (A) (B) (A) (B)
6. Electronics and Software
Rating Abbreviations
(A) : Excellent
(B) : Very Good
(C) : Good
(D) : Average
(E) : Poor
115
6.2 CONCLUSION
The crux of this study is that entire export scenario of Uttar
Pradesh is blur and requires comprehensive restructuring. The contribution of
Uttar Pradesh – the most resourceful, skillful, populous and culturally rich state
is only 5.9% to India’s total export. This itself reflects the shortcomings and
need to drastic improvement of each and every factor effecting the potential
and prospects.
(A) EXPORT POTENTIAL : FACTOR WISE
1. Political Environment
As already stated earlier political stability is the foremost requirement of
a sound economy which has ruthlessly suffered during past 20 years. The
policies and their administrative implementation should be firm and rigid
irrespective of changing political complexion.
7. Resource availability
The state is very rich in natural resources whether it is agricultural,
horticultural or mineral. Limestone, Silica, bauxite, ornamental building stones
rare being exploited to some extent but many other hidden resources are yet to
be unearthed. By-products of agricultural produces and processing of
horticultural crop provide great potential.
There is no dearth of skilful human resource in any sector of products.
However in order to meet global quality, training and brushing of traditional skill
is the need of the day. The State and the public sector is struggling against
financial handicaps. Entry of private sector and FDI may provide a solution at
this front.
116
3. Infrastructure
Power is the most important input to any industry to survive. Paucity of
Power is most crucial and a power scarce state can not attract large industrial
investment. U.P is a state at the verge of collapse in this aspect. It has to
drastically improve power position if it aspires to enhance its export prospects.
Recently the Govt. has paid much attention to rail and road development
in the state, So logistic support to industries is quite satisfactory. With
privatisation of Communication system and advent of Computer Assisted
technology, the communication network is excellent in the state. Land is
available in plenty but the acquisition procedure needs simplification and
acceleration.
4. Investment
Domestic investment does exist but it is not at per requirement. In order
to improve productivity and boost exports. The state has not been able to
attract Foreign Direct Investment (FDI) to great extent which is an extremely
important factor for revenue starved state. It should never be forgotten that
poor law and order condition is the biggest deterrent for an entrepreneur.
Situated in the foothills of the Himalaya and Vindhyan Mountains, U.P is
gifted with innumerous minerals. Dedicated prospecting of underground
treasure and its exploitation is not being done with earnest endeavour to open
new horizons of exportable products. After surrender of precious mountains of
the Himalayas, to Uttaranchal, the state is still in possession of Wood and Herb
rich crust and mineral rich core in Tarai districts of Bijnore, Moradabad, Pilibhit,
Lakhimpur, Bahraich, Gonda, Basti & Gorakhpur in the north and Jhansi,
Lalitpur, Hamirpur, Mahoba, Banda, Mirzapur and Sonebhadra is the south. But
117
finance crunch has resulted in extremely poor efforts in investigation, research
and development of exportable commodities. Japan is transporting iron ore
from Bailadila (Chattisgarh) for its steel industries but U.P never considers
procuring ores from other states and established large industries as export
objects.
6. International Exposure
Market development is critically important tool for growth of international
trade. Active participation in foreign organized seminars, exhibitions, trade fairs
displaying products and interaction with buyer countries play a vital role in sales
promotion. Though the state administration do sponsor its official machinery for
such participation but it must be admitted that the bureaucracy discharges its
duty without any zeal, so the result of their participation remains minimal.
7. Policy Implementation
Due to frequent changing political complexion of the state, policy
implementing agencies is also shuffled in short intervals. This retards
accountability. Fizzling out of tourism promotion policy to construct a compact &
complicated corridor for Tajmahal Complex at Agra and subsequent legal
litigations is a recent example. Incentives to exporters and tax concessions
present a confusing picture.
8. Technology Upgradation
Medicines and Cosmetic products based on Herbs and Ayurveda are in
great demand for exports but they need thorough overhauling of technology,
treatment and labelling. Processed food, sugar and its by-products (Alcohal,
liquor, health drinks etc.) require much modernisation to meet international
requirements. Handlooms – Powerlooms, Leather products, Woodcraft,

118
Glasswork, Handicrafts etc. are pursuing traditional procedures which need
upgradation to meet expectations of foreign buyers.
9. Cost Competitiveness
The state is geographically handicapped due to its distance from Sea-
shores. Transportation of products from place of manufacture, multiple handling
and other logistic expenditures for shipment affect cost effectiveness adversely.
Air cargo is very costly and the state can not afford it for a majority of its
products. Dry ports and transportaion in containers may help to certain extent
but presently this facility is available in NOIDA only which is about 900 Kms
from other extreme of the state on Bihar/Jharkhand border.
(B) PRODUCTWISE
TRADITIONAL
1. Hand Knotted Carpets and Durries
“Mirzapuri Galicha” has been a popular article in foreign countries for many
centuries. The eastern belt with centre space for Bhadohi is thickly populated
with woolen carpets weavers whereas the Western belt from Bareilly-Amroha to
Agra is dense with Durry Weavers. Hand Tufted synthetic carpets industries
have been set up mostly around Agra and lately at NOIDA. Since the foreign
exchange generation from this industry, contributing about 25 % of State’s
Commodity Export and having a share of 93.6 % in India’s total Carpet Exports,
is gradually receding from Rs. 2436.13 crore in 2001-02 to Rs. 2300.04 crore in
2003-04, its strengthening needs attention.
2. Yarn, Textiles and Readymade Garments
Although this industry is the backbone of state’s economy with good
availability of raw material, excellent artisan skill and a strong textile tradition,
its contribution to India’s textile export is only 2.26 %. This industry accounting
119
for 11.36% of the State’s Commodity exports is facing tough challenge from
China and Japan. This industry is one of the oldest one and is highly labour
intensive. Inspite of the fact that the Govt. is assisting weavers in handloom
and silk sectors under various programmes most of the weavers, specially
those making famous Benarasi sarees at Varanasi and Azamgarh are at the
verge of starvation. Modernisation of the Designs and weaving instruments
alongwith search of marketing avenues is urgently needed to save this industry.
For readymade garments more apparel parks have to be established.
3. Leather and Leather Exports
With sizeable population of livestock, U.P has strong potential for the leather
industry. It contributes 14.94% of National exports and a revenue of 1,648.25
crores. Kanpur, Agra, Unnao & NOIDA are important industry bases. The
present product range is also significant but international trends and designs
have to be studied for further growth.
4. Artware of Brass and Other Metals
The main centre for production of artware of brass is Peetalnagri in Moradabad
which alone exports worth Rs. 2200 crore every year. Industries for sheet
metalwares and Aluminium artwork are also under establishment in this region.
Silver artwork from Lucknow are also exported but it is a tiny fields in overall
scenario. Brass artware segment is in healthy condition.
5. Products of Wood
Saharanpur has its identity for woodcraft only. Major earnings in this
sector comes from Shisham furniture and households but due to restrictions on
tree felling and consequent paucity of good quality wood, the industry is
passing through a difficult phase. Bamboo craft and cane craft from Bareilly
region are also exported but their contribution is not very significant. The state
120
does not have fine paper and plywood manufacturing industries of international
standards.
The glass industry is concentrated in a belt extending from Bijnore
(Bahbhoj) to Shikohabad – Ferozabad - Sasni near Agra. Marriageware –
bangles, Kangan, Karas prepared by small industries of Ferozabad are World
famous. Though glass industry is centuries old but its commercial exploitation
for export earning is insignificant. Glass industry has vast potential as raw
materials are available in abundance but its much international exposure is
needed in view of competition from other neighbouring countries.
Potterywares are employment generating industries. Decorative pottery
of Chunar, Chinhat, Khurja find places in drawing rooms of Several Countries.
Packaging and transportation is the bottleneck of this industry’s export market.
Though this sector contributes only 1.5% of the national exports, it has the
potential to generate much more.
NON TRADITIONAL PRODUCTS
1. Agro and Processed Food Products
Agricultural exports make up 21% of India’s total exports, out of which
U.P’s Contribution is only 7%. During April – October 2004 ( six months )
foodgrain worth Rs. 4195.12 Crores , Fruits and Vegetables worth Rs. 1314.42
Crores and other agro products ( Tobacco , Sugar and Derivatives , Oil Seeds
, Live stock based , Dairy and Floriculture ) worth Rs. 2212.09 Totaling Rs.
7748.63 Crores were exported out of which U.P’s contribution is 782.88
Crores.
121
Economy of U.P is based on Agro – Products .,It has plenty of land ,
irregation systems , traditional and advanced knowledge and research
institutes to enhance productivity . It is matter of concern that during first six
months of 2004 – 2005 , foreign revenue has shown a declination in this
sector , More agro based industries , Food processing Zones are required , and
Live stock based projects require merchandising promotions where as much
more areas need to be brought under flower cultivation and farmers tutored for
economic advantage of floriculture.
2. Engineering Goods and Hardware .
In spite of strong mineral base , there is vast scope for development of
this industry . Some of the fabulous and giant industries of India like Diesel
Locomotive Works , Bharat Heavy Electricals , Hindustan Aeronautics , Toyota
Cars , General Motors Daewoo, LG Electronics , Escorts Motors Cycle , Hero
Bicycles , Atlas Bicycles , Hindalco , Jindal Strips etc. have been established in
U.P but still its share in national export is 1.24% only, Power shortage is the
main negative factor in production of engineering goods . Aligarh locks which
are not so dependent on power are doing well .
Exportable Gems and Jewellery from U.P consists of low priced
costume jewellery and semi precious stones. Traditional gold Jewellery with
enamelling and kundan work from Varanasi , Silver Jewellery from Lucknow ,
Moonga – Moti Jewellery from Aligarh , Coloured stones engraved Tajmahal
from Agra and Lac ornaments from Lalitpur are the main export items of the
state . The contributes only 0.7% of the total national export.

122
4. Chemical , Pharmaceuticals and Herbal products
The chemicals industry in U.P is dominated by fertilizers , Cement ,
Organics , Chemicals , Paints , Perfumes , Pharmaceutical, Herbals and
Ayurvedic medicines .U.P is second highest producer of sugarcane which is
responsible for a number of breweries , Alcohols – Sprits , Distilleries and
Organic Chemical products . Herbal and Ayurvedic based medicines ,
Cosmetic products etc are strongly rooted in the state owing to their abundance
availability in hilly and Tarai regions . Fragrance and Perfumes industry of
Kannauj and Lucknow are prospering with a small growth rate. With little more
effort in international exposition , this sector of economy has good potential to
prosper further.
5. Sport Goods and Toys
Indian Sports goods industry is more than 100 Years old . sports
apparels and sport equipments made in U. P excel in quality and Design all
over the World . Most international sports event use products made in Meerut ,
Which is the main production center of almost all sports goods and equipments
including Cricket, Hockey , Golf , Boxing , Table Tennis , Carrom , Chess etc.
This industry is highly labour intensive and provides employment to large
number of workers from the weaker section of society .
Varanasi, Lucknow and Gautam Budh Nagar (NOIDA) are the main Toy
producing centres. Varanasi is famous for Wood toys, Lucknow for clay toys
and NOIDA for soft toys. Hanung Toys (NOIDA) is the largest exporter of soft
toys in India.
6. Electronics and Computer Software
Gautam Budh Nagar (NOIDA) is one of the most important Infotech city
of India replete with leading Indian and Multinational Corporate houses

123
engaged globally in electronics, computer hardware and software technology
business. NOIDA software Technology Park ranks second in the country in
terms of export turnover. It is the epicentre of Information Technology
revolution. In Export Processing Zone of NOIDA, Electronics and Computer
Software industry hold the lion share. Kanpur is another electronics city of the
state. Encouraged by excellent performance of I.T industry, the Govt. of U.P
has established Indian Institute of Information Technology in Allahabad. A
number of call centres and outsourcing companies are working for several
countries accruing majority of export earnings from the services in software
sector. In U.P, the I.T sector has contributed Rs 4500 crores during 2003-04
which is 7.5% of the national exports. Growth rate of this sector is 25% which is
highly satisfactory.
7. Tourism and Other Services
The state has vast potential for tourism due to its rich heritage – historic,
cultural and religious. The state is a conglomerate of Aryan (Hindu), Islamic,
Baudh and Jain culture. Tourists from all over the world arrive regularly round
the year to visit historic reminiscences of Tajmahal (AGRA), Fatehpur Sikri,
Jhansi, Mahoba, Kalinjar, Hindu pilgrims at Ayodhya, Mathura – Vrindavan,
Varanasi, Allahabad, Chitrakoot , Glimpses of Muslim culture at Agra, Lucknow,
Devband and Buddhist monuments at Sarnath (Varanasi), Kapilvastu (near
Gorakhpur), Kaushambi – Shravasti and Kushinagar. During 2003-04, tourist
arrival in U.P was more than 71 million. Tourism is showing a healthy growth
rate of 22.5 % yielding increase in revenue at 30 % during 2004-05
Other services being provided by U.P to yield Foreign Exchange
is in the field of Education, Road and Bridges – Consultancies & Construction,
Housing-Town Planning, Irrigation and Power Generation. The exact impact of

124
these services and some minor exports on total revenue is presently not
available.
From above study it is evidently clear that the state has abundance of
potential to increase its productivity manifold and create a special place
as exporting merchandiser in foreign exchange Basket of the country if it
could remove the bottlenecks and make sincere and concentrated effort
in right direction. To harness its existing resources and streamline
productions, polish the skill, provide dedicated flawless infrastructural
facilities, Political stability of the government is crucial. To enrich its
export portfolio with more and more commodities, thorough
investigations and development of new industries is required. If these
steps are taken earnestly there is no reason that the state enhances its
foreign exchange share in national economy from 6% to 15 or even 20 %
in proportion to its area & population.

125
7. RECOMMENDATIONS
1. Foreign Investors should be convinced about perfect law and order
condition of state and existence of a congenial atmosphere for setting
up industries.
2. Power shortage is the biggest deterrant for FDI as well as domestic
enterpreneurs’ investments in the state. The Govt. must make efforts
to provide uninterrupted, dedicated power supply to industries for
which it has to drastically increase its power potential.
3. The state should think of setting up large industries for production of
metals like steel, copper and Aluminum to meet requirement of its
metal products at lower cost even if it has to procure ore from
neighbouring states.
4. The Vindhyan ranges of Mirzapur & Sonebhadra have limestone rocks
in abundance to suffice for centuries. Fine quality Cement plants
should be set up in this belt in addition to retrieve the Churk, Dalla and
Chunar plants running sick for years. Cement is a potent export
commodity.
5. Export in the Textile sector is on decline. It may probably be difficult to
compete with other textile exporting countries in case of mill fabrics but
in handloom / powerloom sector and silk products the state can beat
everyone by adopting innovative designs and modernisation of
machinery. Weavers are spread allover the State and their service
should be utilized for more and better productivity.

126
6. Marketing strategies of the state are not upto requirement of market.
Extensive exposition of products, publicity and interaction with buyers
should be made with more sincerity and commitment.
7. To expand its glass and ceramics market the state should create a
bigger market for which it has potential by organising marriagewares
and Ceramic fairs and rampshows in Metro cities and in towns where
concentration of Indian citizens (NRI) inhibit abroad.
8. The transportation of products from origin to shipment centres should
be made much cheaper by improving highways and setting up dry
ports and container depots in central and eastern U.P also.
9. Flower cultivation in the state does not attract large number of farmers.
They should be tutored and trained for floriculture as this has great
export prospects with intensification of Air Cargo.
10. Herbal and Ayurvedic medicines / Cosmetics have maximum potential
to multiply. Growing of herbs, menthols and other ayurvedic
ingredients should be encouraged. Research must go-on for making
them more adoptable in foreign countries. Packing & labelling should
also be very sound and attractive.
11. Agro products are yielding good revenue but it can be increased to
great extent by establishing more Food Processing units and exporting
Fruit juices, beverages, Alcohol / Wine, pickles, Jams, Jellies etc to
countries which have meagre prodeuctivity. Export of livestock based
product is highly unsatisfactory compared to potential.
Modernised processing units should be established all over the state to
produce more eatables and their packaging as per international
standards.
127
12. Tourism is a potent exchange earner, but the state lacks in publicity,
superior accommodation and standard food in places of tourist
attraction. These must be improved. The state has a number of Water
bodies where Siberian migratory birds flock in winter. These area
should be developed as tourist centres because bird watchers are
plenty in international arena.
In addition, much more suggestions may be made but they
are mostly available somewhere in the text of this dissertation.

BIBLIOGRAPHY
BOOKS
1. Boyd Harper W., Westfall R., Statsch Stanley F. , Marketing Research

: Text and Cases , Richard D. Irwin Inc. , Homewood, Illinois , 1999,
Pp 90-110, 656-664.
2. Study Material, Research Methodology – Theory, Alagappa University,

Karaikudi, 2004, Pp 1-125.
REPORTS / POLICIES
1. Confederation of Indian Industries (CII), Northern Region, Uttar

Pradesh – An Agenda for Growth, October 2004, Chandigarh.
2. Government of India 2004, Ministry of Textiles : Annual Report

(Handicraft) –2004-05, 2004.
3. Government of India 2004, Ministry of Textiles : Annual Report (Textile

Exports) –2004-05, 2004.
4. Government of India 2004, Ministry of Commerce, Department of

Commercial Intelligence and Statistics (DGCIS), Foreign Trade
Statistics, October 2004 , 2004.
5. Government of Uttar Pradesh 1998, Department of Small Scale

Industries and Export Promotion and Department of Agriculture
Exports : Export Policy (1998-2002)
6. Government of Uttar Pradesh 1999 : Agriculture Policy - 1999,
7. Government of Uttar Pradesh 2004, Industrial & Service Sector

Investment Policy - 2004.
8. Government of Uttar Pradesh 2004: Biotech Policy - 2004.
9. Government of Uttar Pradesh 2004: Food Processing Policy - 2004.
10. Government of Uttar Pradesh 2004: Information Technology Policy –

2004.
11. Government of Uttar Pradesh 2004: Sugar Policy.

WEBSITES
1) Government of Uttar Pradesh

URL : http://upgov.nic.in
2) UP Portal
URL : http://www.upportal.com
3) Export Promotion Bureau, Govt. of U.P.

URL : http://epbupindia.com
4) Department of Information Technology and Electronics

Government of Uttar Pradesh
URL : http://infotech.up.nic.in
5) Uttar Pradesh State Industrial Corporation

URL : http://www.upsidc.com
6) Department of Tourism, Government of Uttar Pradesh

URL: http://www.up-tourism.com
7) Official website for Agra District

URL: http://agra.nic.in
8) Official website for Aligarh District

URL: http://aligarh.nic.in
9) Official website for Ghaziabad District

URL: http://ghaziabad.nic.in
10) Official website for Meerut District

URL: http://meerut.nic.in
11) Official website for Moradabad District

URL:http://moradabad.nic.in
12) Official website for Varanasi District

URL:http://varanasi.nic.in
13) New Okhla Industrial Development Authority (NOIDA)

URL : http://www.noidaauthorityonline.com
14) Handloom Export Promotion Council

URL: http://www.hepc.com
15) Carpets Export Promotion Council
URL://http://www.india-carpets.com
16) Basic Chemicals, Pharmaceuticals and Cosmetics Export

Promotion Council URL: http://www.chemexcil.gov.in
17) Electronics and Software Export Promotion Council

URL: http://www.escindia.org
18) Engineering Export Promotion Council

URL:http://www.eepc.com
19) Sports Goods Export Promotion Council

URL: http://hunttech.com.org
20) National Association of Software and Service Components

(NASSCOM) URL:http://www.nasscom.org
21) http://www.indianleatherportal.com
22) www.indianchemicalportal.com
23) http://www.projectstoday.com
24) http://www.indianbusiness.nic.in
25) http://www.indianindustry.nic.in
26) http://www.indiamart.com
27) http://www.dekhonoidadekho.com
28) http://www.laghu-udyog.com

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EXPORT SCENARIO OF UTTAR PRADESH

Dissertation Submitted to the ALAGAPPA UNIVERSITY in partial

DIRECTORATE OF DISTANCE EDUCATION

I express my most sincere gratitude to my guide Mr. A.K Seth,

Reader, Department of Commerce, Delhi School of Economics, Delhi University

for guiding me in systematic compilation of this study report.

I am indebted to Mr. Rama Kant Verma, B.E, MBA, MFT, Former

Superintending Engineer, Irrigation Department, Govt. of U.P for providing his

able and mature guidance in preparing this dissertation.

I am thankful to Mr. Priyank Verma, Design Consultant, Handloom

explain various aspects of textile industry in Uttar Pradesh.

To conclude, I thank the Director of Distance Education, Alagappa

University and the faculty members of the University for providing me an

Programme. This exposure to practical field has richly benefited me by inducing

confidence in my own capabilities.

CHAPTER 1 : INTRODUCTION 1-6

CHAPTER 2 : REVIEW OF LITERATURE 7-9

CHAPTER 4 : UTTAR PRADESH – A PROFILE 16 – 27

CHAPTER 5 : EXPORT SCENARIO OF U.P. 28 – 111

5.1 EXPORTABLE PRODUCTS AND SERVICES 29 – 96

5.2 BOTTLENECKS IN EXPORT DEVELOPMENT 97 – 100

5.3 EXPORT INITIATIVES IN U.P 101 – 111

CHAPTER 6 : ANALYSIS AND CONCLUSION 112 – 124

CHAPTER 7 : RECOMMENDATIONS 125 – 127

BIBLIOGRAPHY 128 - 130

Table No. Title of the Table Page No.

I Major Industrial Centres of Uttar Pradesh 26

II Uttar Pradesh at a Glance 27

III Exports of Carpets and Durries from India 31

IV Major Production Centres of Carpets and Durries 32

V Major Production Centres of Textiles 39

VI Exports of Leather and Leather Products from India 45

IX Exports of Foodgrains & Cereals from India 65

X Exports of Fruits and Vegetables from India 66

XI Exports of Engineering goods from India 72

XII SSI units for Engineering goods / Hardware in Aligarh 74

XIII Medium / Heavy industries for Engineering goods in Ghaziabad 75

XIV Exports of Gems and Jewellery from India 76

XV Exports of Chemicals, Pharmaceuticals and 80

XVI Exports of Sports goods from India 84

XVII Exports of Electronics and Software from India 88

XVIII Foreign Tourist Arrivals and Foreign Exchange for India 92

Legendary novelist Ruskin Bond has expressed his expression of Uttar

Pradesh in following words –

This amply indicates geographical, historical, natural,

was duly recognized by the then rulers.

After enactment of “Constitution of India” on 26.1.1950 planned

development and harnessing of resources started through “Five year plans”. It

extinction. After creation of basic infrastructure required for industrial growth

like Power, Transport, Communication, Water, manpower and Land

management the state stood up to bid itself as a potent foreign exchange

earner for the national exchequer.

In order to expeditiously implement its principal objective of

cottage and divided them in various sectors of traditional and Non-traditional

industries such as Woolen carpets, Textiles & Garments, Leather, Brassware,

Jewellery, Chemicals, pharmaceuticals & Herbals, Sports Goods and

Consultancy, Irrigation and Power Consultancy etc. occupy an important role in

foreign exchange revenue. This sector has been dealt in a separately.