Uttar Pradesh is the most populous state in India with a population of nearly 200 million people.

At current prices, the gross state domestic product (GSDP) of Uttar Pradesh is estimated to be Rs. 20.48 trillion (US$ 248.66 billion) in 2022-23. The GSDP increased at a CAGR of 8.76% from 2015-16 to 2022-23.

Uttar Pradesh is recognised as a major milk-producing state in India. Milk production in the state stood at 30.5 million tonnes in 2018-19, accounting for 16.50% of the total milk production of the country. Per capita milk availability in the state stood at 359 grams per day in 2018-19.

As of August 2022, Uttar Pradesh had an installed power generation capacity of 29,710.43 MW. Of this, 6,902.20 MW was from state utilities, 14,061.50 MW (private utilities) and 8,746.73 MW (central utilities). Energy requirement in the state was 107,109 million units (MU) between 2019-20.

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.

The state’s resources, policy incentives, infrastructure and climate are best suited for investments in diverse sectors such as Information Technology (IT), agro-based and food processing, light engineering goods, sports goods, textiles, leather-based, tourism, and biotechnology.

The state has a well-developed social, physical, and industrial infrastructure. It also has good connectivity through 48 national highways, six airports and rail links to all major cities. The state has witnessed a high rate of infrastructure growth in the recent past. There has been a considerable rise in the number of industrial clusters/hubs and Public-Private-Partnership (PPP) projects in the infrastructure domain.

Merchandise exports from Uttar Pradesh reached US$ 21.03 billion in FY22 and US$ 9.53 billion in FY23*. The US is the major export market for Uttar Pradesh, accounting for about 20.73% of the export value in FY22.

Uttar Pradesh is a favoured tourist destination in India with Taj Mahal, one of the eight Wonders of the World, located in Agra. In 2019, domestic tourist arrival in the state reached 535.8 million. Foreign tourist arrival crossed over 4.74 million.

Between October 2019-June 2022, FDI inflows in Uttar Pradesh stood at US$ 995.40 million. The state ranked 11th in India in terms of FDI inflows.

As of July 2022, Uttar Pradesh had 23 notified, 14 operational SEZs and 24 formally approved SEZs.

Some of the major initiatives taken by the Government to promote Uttar Pradesh as an investment destination are:

• 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 August 2022, the Indo-Israel Center of Excellence for Vegetables in Chandauli (Uttar Pradesh) was inaugurated by Minister of Agriculture and Farmers Welfare, Mr. Narendra Singh Tomar.
• 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 ground breaking 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.
• Rs. 21,000 crore (US$ 2.71 billion) projects will be launched in the third ground breaking ceremony to be held in June 2022. in the IT and electronics sector.
• The Uttar Pradesh state government is considering expanding the metro rail services to the cities of Bareilly, Jhansi, Gorakhpur, Varanasi, Meerut and Prayagraj. The project is worth Rs. 2,670 crore (US$ 344.3 million), and it will be having 14 elevated stations on a 15.14 km long stretch in the first phase.
• 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.
• The Uttar Pradesh government is all set to establish 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.
• 41,336 food processing units will be established/upgraded in 2022 under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme.
• In July 2021, Prime Minister Mr. Narendra Modi visited Varanasi to inaugurate 65 projects worth Rs. 421.54 crore (US$ 57.34 million).
• 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, the union cabinet approved a memorandum of cooperation with Japan in the field of sustainable urban development which is expected to create employment opportunities.
• Solar Energy Policy 2017 was implemented with an objective to attract private investments for increasing solar power generation. The target was to generate 10,700 MW of solar power by 2022.
• The state cabinet approved UP Defence and Aerospace Units and Employment Promotion Policy 2018 with an intention to generate 250,000 jobs and attract investment worth Rs. 50,000 crores (US$ 7.46 billion) over the next five years.
• 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.
• Uttar Pradesh announced the New Electronics Manufacturing Policy, 2020, to position the state as a global electronics hub. Through this policy, the government intends to attract investments worth Rs. 40,000 crore (US$ 57.3 billion) in the next five years.
• The state government also passed Uttar Pradesh Startup Policy, 2020. The objective of the policy is to be among the top-3 states in Start Up ranking, establish/support minimum of one incubator in each district of the state, and create an ecosystem for at least 10,000 startups in the state.