Economy of Uttar Pradesh

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Economy of Uttar Pradesh
Seal of Uttar Pradesh.svg
Currency Indian rupee (INR) 1 = 100 Paise
GDP 15.89 lakh crore (US$240 billion)(2018-19 est.)[1]
GDP rank 2nd
GDP growth
8% (2018-19 est.)[1]
GDP per capita
82,253 (US$1,300) (2018-19)[1]
GDP per capita rank
GDP by sector
Agriculture (25%)
Industry (24%)
Services (51%) (2016-17)[1]
Public finances
29.8% of GSDP (2018-19 est.)[1]
Revenues 3.54 lakh crore (US$54 billion)(2018-19 est.)[1]
Expenses 4.28 lakh crore (US$66 billion)(2018-19 est.)[1]

The economy of Uttar Pradesh is the second largest of all the states of India. According to the state budget for 2017-18, Uttar Pradesh's gross state domestic product is 14.46 lakh crore (US$220 billion).[2] The largest Indian state, Maharashtra, has an urban population of 50,818,259, while Uttar Pradesh has an urban population of 44,495,063. According to the 2011 census report, 22.3% of Uttar Pradesh's population lives in urban areas. The state has 7 cities with populations exceeding 1 million each, after partition in 2000, the new Uttar Pradesh state produces about 92% of the economic output of the old Uttar Pradesh state. In 2011, the Tendulkar committee reported that 29.43% of Uttar Pradesh's population is poor, while the Rangarajan committee reported that 39.8% of the population is poor.

In the tenth five-year planning period of 2002 and 2007, Uttar Pradesh registered an annual economic growth rate of 5.2%. In the eleventh period, between 2007 and 2012, Uttar Pradesh registered an annual economic growth rate of 7%; in 2012-13 and 2013-14, however, the growth rate decreased to 5.9% and 5.1%, respectively, one of the lowest in India. The state's debt was estimated at 67% of the gross domestic product in 2005; in 2012, the state was one of the highest receivers 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] Additionally, the state government has selected five cities for Metro train projects: Meerut, Agra, Kanpur, Lucknow, and Varanasi, the Lucknow Metro project was completed in September of 2017. Uttar Pradesh is an agrarian state, and it contributed 8.89% in food grain production to the country in 2013-14.

Agriculture, livestock and fishing[edit]

Uttar Pradesh is a major contributor to the national food grain stock; in 2013-14, this state produced 50.05 million tones of foodgrain, which is 18.90% of the country's total production. This is partly due to the fertile regions of the Indo-Gangetic plain and partly due to irrigation facilities such as 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. The majority of the state's population depends upon farming activities. Wheat, rice, pulses, oilseeds and potatoes are major agricultural products. Sugarcane is the most important cash crop throughout the state. Uttar Pradesh is one of the most important states in India as far as horticulture is concerned. Mangoes are also produced in the state.

Uttar Pradesh supports about 15% of India's total livestock population. In 1961, its livestock comprised 15% 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.

Gross State Domestic Product at Current Prices

figures in crores of Indian Rupees

Year Gross State Domestic Product[4]
1980-81 15,554 crore (equivalent to 2.6 trillion or US$39 billion in 2017)
1985-86 27,748 crore (equivalent to 2.9 trillion or US$45 billion in 2017)
1990-91 55,506 crore (equivalent to 3.9 trillion or US$59 billion in 2017)
1995-96 106,249 crore (equivalent to 4.5 trillion or US$69 billion in 2017)
2000-01 173,068 crore (equivalent to 5.1 trillion or US$78 billion in 2017)
2005-06 241,196 crore (equivalent to 5.8 trillion or US$89 billion in 2017)
2010-11 532,218 crore (equivalent to 8.5 trillion or US$130 billion in 2017)
2015-16 906,909 crore (equivalent to 9.7 trillion or US$150 billion in 2017)
2017-18 1,446,000 crore (US$220 billion)[2] (est.)


UP has 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 a visible decline in poverty in the state. However, nearly 40 percent of the total population lives below the poverty line.

There are numerous types of minerals in the state and many industries have come up based on 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. Nevertheless, 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 a booming electronics industry, especially in the UP-Delhi-NCR and Lucknow-Kanpur Corridors where many electronics units are produced.

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

  • 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 $0.1 million USD 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 produced here like iron sheet metalwares, aluminium artworks, wood works and glasswares have 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 one of the biggest gold market in Asia. It is one of the largest 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, and others, the Sikandrabad industrial area, developed by UPSIDC, has a large number of national and multinational companies working here successfully.

Minerals and heavy industries[edit]

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

Mathura Refinery situated in Mathura is the only oil refinery in Uttar Pradesh, and is the 6th largest oil refinery in India.

Handloom and handicrafts[edit]

Handlooms and handicrafts are a very important source of income in UP. There are thousands of power looms and handlooms in the state, most of which are situated in eastern UP. Many people depend on it for their livelihood. Main centres in eastern UP include Tanda, Banaras, Azamgarh, Bhadohi, Mau and Mau Aima; in western UP some of the important centres are Meerut and Etawah. In eastern UP, Tanda is a small town with a population of approximately 150,000 people with over 100,000 power looms, the main products include Lungis, Gamchas, Stoles, Arabic Rumaal, and garment clothes.


The service industry plays a large role in the economy of Uttar Pradesh, it contributed nearly 49% of the gross state domestic product in 2017-18.[1] 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, such as Noida, Greater Noida and Ghaziabad, which lie in the National Capital Region (NCR) and in the state capital Lucknow.

Noida is also famous for TV News broadcasters. Almost all News channels such as ABP News, Zee News, NDTV and Mahua News are located in Film City.


The infrastructure condition in UP pales in comparison to the other advanced states of India; in 2013, the central government declared the construction of Chaudhary Charan Singh International Airport in Lucknow and Lal Bahadur Shastri Airport in Varanasi. In January 2015, it was announced that the Metro Train project for Lucknow would be completed as of December 2016, the Uttar Pradesh government bus service is one of the largest in the 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 had been proposed in Kushinagar district. Uttar Pradesh has the most number of national highways, the Yamuna Expressway which is between New Delhi to Agra, is one of the best highways of the country. In 2015, the state government started another expressway project between Agra to Lucknow which will reduce the journey time, it was inaugurated on 21 November 2016, on 31 December 2015, Prime Minister Narendra Modi announced an expressway between New Delhi and Meerut, which will cost 7500 crore₹. It will reduce the journey time to one hour.

Natural resources[edit]

Uttar Pradesh is divided into three natural regions. 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.


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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 cities 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 the palace of Nawab are the main monumental attractions of the 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.

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, the State has many Muslim pilgrims in Rampur, Bareilly and Lucknow.


Uttar Pradesh is one of India's lower states in literacy rate with just 69.72%, ranked 29th in India according to the 2011 census. The state does 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.[5]

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 deemed 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 Bareilly. 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. Veer Bahadur Singh Purvanchal University, Jaunpur, Bundelkhand University, Jhansi, Chaudhary Charan Singh University Meerut, Gautam Buddha University Greater Noida, Gorakhpur, Dr. Bhim Rao Ambedkar University Agra, Sampurnanand Sanskrit Vishwavidyalaya, Varanasi, Mahatma Gandhi Kashi Vidyapith Varanasi, Lucknow university, Tirthankar Mahavir Vishvavidhyalay Moradabad and are the famous state universities. Dr. APJ Abdul Kalam Technical University is the main state technical university. An agricultural CSA is established in Kanpur And Another University in Jhansi .

See also[edit]


  1. ^ a b c d e f g h "Uttar Pradesh Budget Analysis 2018-19" (PDF). PRS Legislative Research. Retrieved 20 February 2018. 
  2. ^ a b Gayam, Aravind (12 July 2017). "Uttar Pradesh Budget Analysis 2017-18" (PDF). PRS Legislative Research. Retrieved 13 September 2017. 
  3. ^ "NRIs beat FDI, keep the money coming". Hindustan Times. 8 October 2012. Retrieved 2014-07-09. 
  4. ^ "Table 5 : Net State Value Added – State-Wise (At Current Prices)" (PDF). Reserve Bank of India. September 15, 2017. Retrieved January 11, 2018. 
  5. ^ "Asia's 1st human DNA bank in UP". Retrieved 15 June 2008.