The strategy document by Spark Capital paints an optimistic picture of Uttar Pradesh and signals that the state is all but ready to shed the BIMARU tag.

In the 1980s, Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh got clubbed together under the acronym BIMARU referring to their sick status as reflected in various key economic and social indicators. Today, the concept is outdated with Rajasthan, Madhya Pradesh, and even Bihar registering impressive economic growth. Instead of BIMARU, constituents of which were distributed between east, west and central India, now the states comprising the eastern wing are considered a drag on the country’s development. India’s success will depend on how these states chart their course.

By virtue of being India’s most populous state, Uttar Pradesh assumes immense importance in the scheme of things. UP would be the fifth largest country in terms of population if it were a separate country, however, in terms of gross domestic product (GDP), it’s comparable to Bangladesh. But things have started taking a turn for the better.

Spark Capital, an investment banking, investment advisory and institutional equities and infrastructure advisory services firm has come with a strategy document that notes five epochal changes currently taking place in Uttar Pradesh, which can put the state on a high growth trajectory.

First, massive crackdown on criminals since the Yogi Adityanath government assumed charge in March last year, which has resulted in the elimination of around 50 most wanted criminals, arrests of 4,881 criminals, with over 5,000 criminals having asked for their bails to be cancelled out of fear. Cops who spoke to Spark Capital team told that they have received strict instructions “from the top to control not only crime but to stop any form of extortion, eve teasing etc”. The strategy document notes that by straightening out the law and order problem, the state stands to reap peace dividend which has positive economic side effects of its own. Due to better policing and establishment of peace, women can be in workforce, small vendors can operate without fear of extortion and economic activities also get a leg up.

Second, road infrastructure in Uttar Pradesh has really started to improve. Spark’s strategy notes that total spending by the state government on roads and bridges stood at Rs 708 billion in the last four years (FY14-FY17) which was 1.4 times the combined spend in the previous 10 years. Be it rural or urban areas, roads are being laid at face pace.