With a current Gross State Domestic Product (GSDP) of more than Rs 27.5 trillion, Uttar Pradesh contributes roughly 9.2 percent to India’s Gross Domestic Product (GDP).
At present, the state’s GDP growth rate stands at 11.6 percent, which is significantly higher than the national average of 9.6 percent.
Chief minister Yogi Adityanath has envisioned to make UP the number one state economy by 2030.
Once ranked 7th or 8th among Indian states in terms of economic strength, the GSDP remained stagnant for years despite its rich natural and spiritual resources.
“That changed in March 2017, when Yogi government came to power. Under his leadership, the economy has witnessed a historic resurgence making UP the country’s 2nd largest state economy,” a senior official remarked.
Economic experts and institutions are now increasingly acknowledging that UP has the potential to become the growth engine of a developed India.
Recently, former NITI Aayog Vice Chairman Rajiv Kumar noted UP has all the ingredients for success — 56 percent of its population is young, the state has nine types of agricultural climate zones, and abundant water resources.
On the lines of One District One Product (ODOP), UP is now planning to launch One District One Cuisine to further boost local identity.
ODOP has become one of the most successful schemes, which has been praised by Prime Minister Narendra Modi. Even countries like Indonesia have shown interest in it.
Flagship initiatives like One District One Product (ODOP) and One District One GI (Geographical Indication) are key parts of this plan.
In terms of financial health, NITI Aayog has listed UP as a ‘front-runner’ state in its fiscal performance report. The Reserve Bank of India has ranked UP second in the country for tax collection.
For the past five years, the state has maintained a revenue surplus, which means it is earning more than it spends. This has been made possible by cracking down on tax evasion and using digitization to increase transparency.
Another flagship initiative is One District One GI (Geographical Indication) that seeks to promote local industries and handicrafts.
Moreover, UP’s Credit-Deposit (CD) ratio has risen from 46 percent in 2016–17 to 61 percent in 2024.
The state aims to improve this further to 67–70 percent in the current financial year 2025-26.
As UP’s economy grows stronger, banks are more interested in funding its projects.
According to the RBI’s August 2023 bulletin, UP attracted the highest share of funding in the country, with a 16.2 percent contribution.