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Economy of Uttar Pradesh

The economy of Uttar Pradesh is the second largest economy in India . According to budget 2017-18, Uttar Pradesh's GSDP is 14.46 lakh crore (US$230 billion). According to 2011 census report Uttar Pradesh have 22.3% urban population. Maharashtra have 5,08,18,259 urban population while Uttar Pradesh have 4,44,95,063. State have 7 cities with population more than one million. After partition in 2000, the new Uttar Pradesh state produces about 92% of the output of the old Uttar Pradesh state. According to Tendulkar committee 29.43% population of Uttar Pradesh is poor in 2011-12 while Rangrajan committee gave the report of 39.8% poor for same period in state.

Economy of Uttar Pradesh
Seal of Uttar Pradesh.svg
Currency Indian rupee (INR) 1 = 100 Paise
GDP 14.46 lakh crore (US$230 billion)(2017-18)[1]
GDP rank 2nd
GDP growth
16% (2017-18)[1]
GDP per capita
48,520 (US$760) (2017-18)[1]
GDP per capita rank
GDP by sector
Agriculture (23%)
Industry (28%)
Services (49%) (2017-18)[1]
Public finances
28.6% of GSDP (2017-18 est.)[1]
Revenues 3.20 lakh crore (US$50 billion)(2017-18 est.)[1]
Expenses 3.85 lakh crore (US$60 billion)(2017-18 est.)[1]

In 10th Five year planning between 2002 and 2007 state registered 5.2% annual economical growth. In 11th Five year planning between 2007 and 2012 state touched 7% annual economical growth. But after that it fell on 5.9% in 2012-13 and 5.1% in 2013-14 one of the lowest in India. The state's debt was estimated at 67 per cent of GDP in 2005.[2] In 2012, the state was one of the highest receiver of overall remittances to India which stood at $0.1 billion (Rs. 3,42,884.05 crore), along with Kerala, Tamil Nadu, and Punjab.[3] State government selected five cities Meerut, Agra, Kanpur, Lucknow and Varanasi for Metro train project. In Lucknow Metro project is in process which will be completed by 2017. Uttar Pradesh is an agrarian state which contributed 8.89% in food grain production of country in 2013-14.

Gross State Domestic Product at Current Prices (73–74 Base)

figures in crores of Indian Rupees

Year Gross State Domestic Product
1980 15,554
1985 27,748
1990 55,506
1995 106,249
2000 173,068
2005 241,196


Agriculture, livestock and fishingEdit

Uttar Pradesh is a major contributor to the national food grain stock. In 2013-14 state produced 50.05 million tones of foodgrain which is 18.90% country's total production. Partly this is due to the fertile regions of the Indo-Gangetic plain and partly owing to irrigation measures such as the canals and tube-wells. Lakhimpur Kheri is a densely populated sugar producing district in the country. It has been the most common producer of food grains in India since the 1950s due to high-yielding varieties of seed, greater availability of fertilizers and increased use of irrigation [1]. Western Uttar Pradesh is more advanced in terms of agriculture as compared to the other regions in the state. Majority of the state population depends upon farming activities. Wheat, rice, pulses, oil seeds and potatoes are the major agricultural products. Sugarcane is the most important cash crop throughout the state. Uttar Pradesh is one of the most important state in India so far as horticulture is concerned. Mangoes are also produced in the state.

Uttar Pradesh supports about 15% of India's total livestock population. Of its livestock in 1961, 15% were cattle, 21% buffaloes, 13% goats and 8% other livestock. Between 1951 and 1956 there was an overall increase of 14% in the livestock population. There are about 8,000 km² of water area, including lakes, tanks, rivers, canals and streams. The fishing area in the state is over 2,000 km² and there are more than 175 varieties of fish.


UP has also witnessed rapid industrialization in the recent past, particularly after the launch of policies of economic liberalization in the country. As of March 1996, there were 1,661 medium and large industrial undertakings and 296,338 small industrial units employing 1.83 million persons. The per capita state domestic product was estimated at Rs 7,263 in 1997–98 and there has been visible decline in poverty in the state. Yet, nearly 40 percent of the total population lives below the poverty line. There are numerous types of minerals and many industries have come up based upon these minerals. There are a number of cement plants in Mirzapur in the Vindhya region, a bauxite-based aluminium plant in the Banda region and Sonbhadra region. In the hilly regions of the state many non-metallic minerals are found which are used as industrial raw materials. Coal deposits are found in the Singrauli region.

The state is poor in mineral resources. The only considerable deposits are of limestone in Mirzapur district. These are being extracted and are used largely in cement manufacture.

Uttar Pradesh has booming electronics industries, especially in UP-Delhi-NCR and Lucknow-Kanpur Corridor. It produces almost all types of durables.

Cottage industries, such as handloom and handicrafts, have traditionally provided livelihood to a large number of people in the state: -

  • Varanasi is a world-famous centre of handloom woven, embroidered textiles; the main products are Zari-embroidery and brocade-work on silk sarees. Lucknow is a centre of 'Chikan' embroidery, renowned for its grace and delicacy, a skill more than 200 years old. Uttar Pradesh produces about 15% of the total fabric production of the country, employs about 30% of the total workforce of artisans in India and is responsible for an annual production of about US$0,1 million in the state.
  • Varanasi is well known for manufacturing the diesel-electric locomotives at Diesel Locomotive Works. The workshop at DLW is further upgraded to manufacture electric locomotives for Indian Railways. It is the largest diesel-electric locomotives manufacturer in India.
  • The state has two major production centres of leather and leather products, with over 11,500 units; Agra and Kanpur are the key centres. About 200 tanneries are located in Kanpur.
  • Moradabad is renowned for brass work and has carved a niche for itself in the handicraft industry throughout the world. Lately other products that are also produced here like iron sheet metalwares, aluminium artworks, wood works and glassware's have also become popular with the numerous foreign buyers and are therefore being exported in large quantities. On an average Moradabad exports goods worth Rs. 30–40 billion each year, which constitutes 40% of total exports from India under this category.
  • Meerut is the biggest gold market of Asia. It is the biggest exporter of sports related items and music instruments of the country.
  • Bulandshahr is renowned for Khurja Pottery worldwide. There are nearly 23 export oriented units and they are exported to foreign countries such as the United Kingdom, USA, Australia, New Zealand, United Arab Emirates, etc. Sikandrabad industrial area, developed by UPSIDC, has a large number of national and multinational companies working here successfully.

Minerals and heavy industriesEdit

Uttar Pradesh has ample reserves of coal, dolomite and gems. Other important minerals include diaspore, sulphur and magnesite, prophyllite, silica sand and limestone. Ghaziabad, Gautam Buddh Nagar, Kanpur, Lucknow, Sonbhadra, Mirzapur, Balrampur are most industrious area in state.

Mathura Refinery situated in Mathura is the only oil refinery in Uttar pradesh is the 6th Biggest Oil Refinery in India

Handloom and handicraftsEdit

Handlooms and handicrafts are a very important source of income in UP. There are thousands of powerlooms and handlooms mostly of which in eastern UP. Lacs of people depend on it for their livelihood. Main centres in eastern UP are Tanda, Banaras, Azamgarh, Bhadohi, Mau, Mau Aima etc. While in western UP some of the important are Meerut, Etawah. In eastern UP Tanda is small town which population is 1.5 lac near about and exists more than 1 lac powerloom there as well as in the surroundings. Main products are Lungi, Gamcha, Stoles, Arabic Rumaal and garment clothes.


The services playing big role in the economy of Uttar Pradesh. It contributed nearly 56% in Gross State Domestic Product in 2013-14. Uttar Pradesh is the 'IT-Hub' of North India, with a share of software exports next to that of Karnataka. But, unlike South Indian states, IT enterprises are limited to particular areas only, like NOIDA, Greater NOIDA, Ghaziabad etc., which lie in National Capital Region (NCR), and in state capital Lucknow.

Noida is also famous for TV News broadcasters almost all News channels such as ABP News, Zee News, Ndtv, Mahua News and several other News channels are in Film City


Although the infrastructure condition in state is not good comparing to other advance states of India. In 2013 central government declared Chaudhry Charan Singh International Airport Lucknow and Lal Bahadur Shastri Airport Varanasi international airport. In January 2015 metro train project announced for Lucknow which is completed as of December 2016. Uttar Pradesh government bus service is one of the largest in country with more than 10,000 buses. The length of national highway and railway track is highest in Uttar Pradesh in India. A new international airport is projected in Kushinagar district. Uttar Pradesh have most number of national highways. Yamuna express way between New Delhi to Agra is one of the pioneer highway of country. In 2015 state government started another express way project between Agra to Lucknow to reduce the journey time, which is inaugurated on 21 November 2016 . At 31 December 2015 Prime minister Narendra Modi inaugurated an express way between New Delhi to Meerut which will cost 7500 crore₹. It will reduce one hour journey time.

Natural resourcesEdit

Uttar Pradesh is divided in three natural region. 1- Bhabar and Terai 2- Plain of Ganga and Yamuna 3-Southern Plateau Important minerals include diaspore, sulphur and magnesite, pyrophyllite, silica sand and limestone. It is of great use to the people of Uttar Pradesh as well as it supports the economy of the country.


[relevant? ]

Uttar Pradesh attracts a large number of both national and international visitors. There are three main areas in the state where a majority of the tourists go. These are the city of Agra, Lucknow and the holy city Varanasi. The cities of Ayodhya, Mathura, and Allahabad, are other famous tourist places. The rivers Ganga Yamuna and the Ghaghra are sacred for people. The state hosts a Kumbha Mela at Allahabad on the confluence of rivers Ganga and Yamuna in every 12 years, where over 10 million Hindus congregate – the largest gathering of human beings in the world.

A vast number of tourists visit the Taj Mahal in Agra. Another important tourist attraction in Agra is the Agra Fort. Also famous is a 16th-century capital city built by the Mughal emperor Akbar known as Fatehpur Sikri near Agra. Dayal Bagh is a temple built in modern times that many visit. It is still under construction, and would take an estimated one century for completion. The lifelike carving in marble is not seen anywhere else in India. Lucknow is known as the city of Nawab. Imambada and palace of Nawab are main monumental attraction of city. Dudhwa National Park is one of the best Tiger reserves in the country. Lakhimpur Kheri is a must see location, and home to the Tiger reserve., In September 2008, Uttar Pradesh has got another Tiger Reserve area in Pilibhit named Pilibhit Tiger Reserve. Another new Tiger reserve is Amangarh tiger reserve in Bijnor district.

Every year thousands gather at Allahabad to take part in the festival on the banks of the Ganges, the Magh Mela. The same festival is organised in a larger scale every 12th year and attracts millions of people and is called the Kumbha Mela.

Varanasi is the oldest city in this world even older than the civilization It is so old that It is difficult to find the chronology of this place according to hinduesam this is the city of lord shiva. It is famous for its ghats (steps along the river) which are populated year round with people who want to take a dip in the holy Ganges River. Varanasi also known as secret city of Hindus. The city is birthplace of many Tirthankaras, monks and poets. About 13 km from Varanasi is the historically important town of Sarnath. Gautama Buddha gave his first sermon at Sarnath after his enlightenment and hence is an important pilgrimage site for the Buddhists. Also at Sarnath are the Ashoka Pillar and the Lion Capital, both important archaeological artifacts with national significance. The cuisine, clothes and galli or streets of Varanasi is famous. Uttar Pradesh industrial city is Kanpur. There are many places to visit: Nanarao Park, Sudhansu Ji Maharaj Aashram, Motijheel, Iskon Temple, Phoolbagh, Ganga Bairaj, etc., and many more other places. There is also a place in Bithoor 25 km from Kanpur city where goddess Sita lived with Maharishi Valmiki. The Bhitargaon temple of Gupta period is built by bricks and it is oldest brick temple. It is one of the main centre of attraction for Archaeologists as well as for common people. Ayodhya is located on the bank of Ghaghara or Saryu in Faizabad district. It is believed that Lord Ram was born here. People take bath in river Saryu on special fair occasions. State have many Muslim pilgrims in Rampur, Bareilly and Lucknow.


Uttar Pradesh is one of the backward state in literacy rate have just 69.72%with 29th place in India according to census 2011. But it have national and international standard institutions. Asia's first and the world's second human DNA bank [2] has been set up at the Biotech Park in Uttar Pradesh's Lucknow district.[4]

Rs 4-bn Discovery Park, for which an approval has been given by the Ministry of Science and Technology, is to be set up in the Rajiv Gandhi Institute of Information Technology (RGIIT). Uttar Pradesh have 58 universities in which 5 are central, 23 are state, 10 are Deemd and 20 are private. Five central universities are- Banaras Hindu university Varanasi, Aligarh Muslim University, Allahabad University and Dr. Bhim Rao Ambedkar University Lucknow. A new central university Rajiv Gandhi National Aviation University start in Rai Barailly. An Indian Institute of Management is located in state capital Lucknow which was established in 1984. State have also two IIT in Kanpur and IIT BHU Varanasi. An IIIT and MNNIT in Allahabad. Uttar Pradesh have many state universities which have many affiliated colleges. Beer Bahadur Singh Purvanchal University Jaunpur, Bundelkhand university Jhansi, Chaudhary Charan Singh University Meerut, Gautam Buddha University Greater Noida, Deen Dayal Upadhyay university Gorakhpur, Dr. Bhim Rao Ambedkar University Agra, Ram Manohar Lohia University Faizabad, Sampurnanand Sanskrit Vishvavidhyalay Varanasi, Mahatma Gandhi Kashi Vidyapith Varanasi, Lucknow university, Tirthankar Mahavir Vishvavidhyalay Moradabad and Nehru Gram Bharti University Allahabad ,CSJM University And HBTU Kanpur are famous state university. Kalam Technical University is main state technical university. An agricultural CSA is established in Kanpur And Another University in jhasi .

See alsoEdit


  1. ^ a b c d e f g "Uttar Pradesh Budget Analysis 2017-18" (PDF). PRS Legislative Research. Retrieved August 22, 2017. 
  2. ^ Uttar Pradesh economy climbs to $55b by 2005
  3. ^ "NRIs beat FDI, keep the money coming". Hindustan Times. 8 October 2012. Retrieved 2014-07-09. 
  4. ^ "Asia's 1st human DNA bank in UP". Retrieved 15 June 2008.