Introduction
Uttar Pradesh is the most populous state in India with a population of more than 200 million people. Uttar Pradesh shares its borders with Nepal on the north, the Indian states of Uttarakhand and Himachal Pradesh on the northwest, Haryana, Delhi and Rajasthan on the west, Madhya Pradesh on the south, Chhattisgarh and Jharkhand on the southeast, and Bihar on the east.
In August 2022, Uttar Pradesh revealed the draft of its Solar Energy Policy-2022, which indicates that the state has a goal of producing 16,000 MW of renewable energy by 2026–27.
Uttar Pradesh is the largest producer of food grains in India and accounted for about 17.83% share in the country’s total food grain output in 2016-17. Food grain production in the state stood at 49,903.1 thousand tonnes in 2016-17 and 51,252.7 thousand tonnes in 2017-18. Major food grains produced in the state include rice, wheat, maize, millet (bajra), gram, pea and lentils.
Pulses production in the state stood at 2.56 million tonnes in 2020-21*. Production of vegetables stood 29,940.09 thousand MT in 2021-22*.
The state offers a wide range of subsidies, policy and fiscal incentives as well as assistance for businesses under the Industrial and Service Sector Investment Policy, 2004 and Infrastructure and Industrial Investment Policy, 2012. The state has well-drafted, sector-specific policies for IT and biotechnology. The new Uttar Pradesh Civil Aviation Promotion Policy 2017 was brought to promote investment and trade in Uttar Pradesh and to promote tourism while increased road connectivity along with air connectivity will create more employment avenues.
In 2019, 147 investment intentions worth Rs. 16,799 crore (US$ 2.40 billion) were filed in Uttar Pradesh.
In 2020, the state government rolled out the New Electronics Manufacturing Policy, 2020 and Uttar Pradesh Startup Policy, 2020, to promote the local manufacturing and new startups in the state.
Uttar Pradesh Tourism
Uttar Pradesh is a favored tourist destination in India with Taj Mahal, one of the eight wonders of the world, located in Agra. The state witnessed rise in tourist arrivals, with 320 million tourists arriving in 2023, and is expected to grow further. The opening of the Ram temple in Jan 2024 significantly increases religious tourism in Uttar Pradesh. According to Jefferies, the Ram temple is projected to attract at least 100 million visitors annually. Additionally, Uttar Pradesh government is also established the UP-Ecotourism Development board. The key objective of the initiative is to promote the state's rich legacy of forests and wetlands to increase tourist footfall while creating jobs for those living around the natural heritage.
Economy of Uttar Pradesh
At current prices, the gross state domestic product (GSDP) of Uttar Pradesh is estimated to be Rs. 24.99 trillion (US$ 300.01 billion) in 2024-25. The GSDP is expected to increase at a CAGR of 9.05% from 2018-19 to 2024-25. As of March 2024, Uttar Pradesh had an installed power generation capacity of 31,426.33 MW. of 31,426.33 MW. Of this, 7,908.20 MW was from state utilities, 14,773.20 MW (private utilities) and 8,744.93 MW (central utilities). Thermal power contributed 22,517.26 MW to the state’s total installed power generation capacity, followed by 3,424.02 MW (hydropower), 289.48 MW (nuclear power) and 8,619.59 MW (renewable power), as of March 2024. According to Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in Uttar Pradesh stood at US$ 1,634.97 million between April 2000-March 2024. Merchandise exports from Uttar Pradesh reached US$ 20.57 billion in FY24 v/s US$ 21.68 billion in FY23. Electronic goods were the leading export category with 22% share of state exports in 2023-24.
Industries in Uttar Pradesh
Uttar Pradesh is the largest producer of food grains in India and accounted for about 17.83% share in the country’s total food grain output in 2016-17. Prime Minister, Mr. Narendra Modi laid the foundation stone and dedicated to the nation multiple development projects worth over Rs. 19,150 crores (US$ 2.30 billion) in Varanasi, Uttar Pradesh. According to the state government, as many as 1,500 projects worth more than Rs. 70,000 crore (US$ 9.03 billion) are planned to be launched in Uttar Pradesh’s third groundbreaking ceremony to be held in June 2022. Some of these major projects are:
- Adani Group’s project worth around Rs. 4,900 crore (US$ 631.86 million).
- Hiranandani Group’s two data centres in Noida with an investment of Rs. 9,100 crore (US$ 1.17 billion).
- Microsoft’s Rs. 2,100 crore (US$ 270.85 million) software development centre.
- Dalmia Group’s Rs. 600 crore (US$ 77.38 million) cement manufacturing plant in Mirzapur, Hamirpur.
Recent Developments in Key Sectors
- In October 2022, Minister of Road Transport and Highways, Mr. Nitin Gadkari, announced new projects worth Rs. 7,000 crore (US$ 8.5 billion) for Uttar Pradesh.
- In October 2022, Chief Minister Mr. Yogi Adityanath said that from the following academic year, all colleges and institutions in Uttar Pradesh will offer medical and engineering programmes in Hindi.
- In the State Budget 2024-25:
- In the State Budget 2024-25, Rs. 40,686 crore (US$ 4.8 billion) has been allocated for the development of roads and bridges. Of this, Rs. 668 crore (US$ 80.19 million) is allocated for road transportation.
- As per the State Budget 2024-25, Rs. 45,832 crore (US$ 5.5 billion) has been allocated to the energy sector. Out of this, Rs. 16,400 crore (US$ 1.97 billion) is allocated for power subsidies. Rs. 1,800 crore (US$ 216 million) grants have been allocated to UPPCL for tariff subsidy to private tubewell consumers.
- As per State Budget 2024-25, a total amount of Rs. 23,744 crore (US$ 2.85 billion) has been allocated towards Urban Development. Out of this, Rs. 2,674 crore (US$ 321.01 million) has been allocated for grants towards the creation of capital assets under PM Awas Yojana (Urban).
- In the State Budget 2024-25, the state Government allocated Rs. 1,00,335 crore (US$ 12.05 billion) towards Education, Sports, Arts, and Culture. Out of this, Rs. 1,856 crore (US$ 222 million) is allocated towards primary education under Samagra Shiksha Abhiyan.
- As per State Budget 2024-25, Rs. 42,774 crore (US$ 5.13 billion) was allocated to the health and family welfare sector.
- 41,336 food processing units will be established/upgraded in 2022 under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme.
- With the help of the state government's Food Processing Industries Policy 2017 (revised), the government has planned to set up 375 large food processing units in 2022.
- In May 2022, Amity University in Noida, Uttar Pradesh, signed an MoU with the Tourism & Hospitality Skill Council (THSC), with the aim to train the students in the field of tourism, travel, hospitality and aviation by different campuses of Amity University, through the implementation programmes under this MoU.
- Uttar Pradesh has now become home to the country’s first-ever ‘Amrit Sarovar’ which was inaugurated in Rampur district in May 2022. It is one of the 789 ponds which the Uttar Pradesh government will develop. Nearly Rs. 60 lakh (US$ 77,384.88) were spent in the creation of this water body.
- In June 2021, Uttar Pradesh receives a record investment of Rs. 4,074 crores (US$ 554.24 million) in food processing.
- The tourism administration of Uttar Pradesh is planning to develop a helicopter taxi service to connect the state's most popular locations, as of September 2021.
- Uttar Pradesh has capacity to produce 4,248.76 MW of renewable energy. The state Government has set an objective of annual addition for production capacity of solar energy to 2,000 MW.
- In June 2021, Greenply Industries announced that it will invest around Rs. 75 crore (US$ 10.30 million) to set up a plywood and allied products manufacturing unit at Sandila Industrial Area in Hardoi, Uttar Pradesh.
- In May 2021, Uttar Pradesh government announced that it would spend US$ 1 billion to buy COVID-19 vaccine.
- In January 2021, the state government announced its plan to build 1,038 new Ganga aarti platforms along the river in Bijnor and Ballia districts.
- Uttar Pradesh accounts for strong demand for fertilisers on account of the high availability of acreage coupled with the large size of the state.
FACTFILE
Capital
LucknowGeographical Area (sq km)
240,928State Language
Hindi, English and UrduLiteracy Rate
67.68 per centKey Industries:
Information technology
Agro processing
Mineral-based industries
Textiles
Food processing
Handloom and handicrafts
Sports goods
Tourism
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