Cheap labour will draw industries
Dr Anupam Khanna chief economist, NASSCOM, speaks at the HT Conclave in Lucknow, Uttar Pradesh.lucknow Updated: May 27, 2012 15:39 IST
Uttar Pradesh has tremendous potential to become the growth engine of the country, said Dr Anupam Khanna, chief economist, NASSCOM, while speaking at the UP Development Conclave on Friday.
"The state's huge population can actually work to its advantage in developing the IT sector here," added Khanna.
He also discussed the findings of a recent NASSCOM survey according to which the growth of the industry would not only contribute to the state's revenue, but also generate productive employment.
IT industries are now moving to the second-tier and third-tier cities, which can also work in the state's favour. Khanna also said cheap labour would attract IT industries to two-tier and three-tier cities.
"As 58 to 60% of the staff employed in the IT sector is from two-tier and three-tier cities, these industries are now planning to expand in the two-tier cities instead of going to the metros. Long distances and huge transportation cost are other factors that would attract the IT industries to states like UP."