Faqs on Economy of Uttar Pradesh

What is the current size and growth rate of Uttar Pradesh’s economy?

For the fiscal year 2023-24, Uttar Pradesh’s Gross State Domestic Product (GSDP) is estimated at ₹24.39 lakh crore (US$290 billion), making it the third largest state economy in India. The estimated growth rate for 2023-24 is 7.2%.

How does Uttar Pradesh’s economy compare to the national economy?

Uttar Pradesh contributes around 8% to India’s national GDP. The state has witnessed significant growth, often outpacing the national average in recent years.

Which sectors are the main drivers of Uttar Pradesh’s economy?

  • Agriculture: Remains the largest employer, with a focus on food grain production (wheat, rice, sugarcane, potatoes, pulses).
  • Industry: Manufacturing (textiles, sugar, leather, food processing), construction, and mining are significant contributors.
  • Services: The fastest-growing sector, encompassing IT, tourism, real estate, and financial services.

What are some of the emerging sectors in Uttar Pradesh’s economy?

Renewable energy, electric vehicles, logistics, and warehousing are emerging sectors attracting investments.

 What are the major infrastructure projects underway in Uttar Pradesh?

  • Expressways: Purvanchal Expressway, Bundelkhand Expressway, and Ganga Expressway are key projects enhancing connectivity.
  • Airports: Noida International Airport (under construction) will be a major aviation hub.
  • Industrial Corridors: Development of industrial corridors like the Delhi-Mumbai Industrial Corridor and the Amritsar Kolkata Industrial Corridor.

 How is the state addressing power and water needs for development?

Uttar Pradesh is investing in renewable energy projects (solar and wind) and improving irrigation facilities to meet the growing demand for power and water.

 What are the major challenges to economic growth in Uttar Pradesh?

Poverty, unemployment, skill gaps, agricultural vulnerability, infrastructure deficits in some regions, and bureaucratic hurdles remain key challenges.

What initiatives has the government taken to address these challenges?

  • One District One Product (ODOP): Promotes local crafts and industries.
  • Skill Development Mission: Enhances the employability of the workforce.
  • Invest UP: A single-window clearance system to attract investments.
  • Agriculture reforms: Initiatives to improve farm incomes and modernize agriculture.
  • Infrastructure development: Focus on building roads, expressways, airports, and logistics hubs.

 What are some recent positive trends in Uttar Pradesh’s economy?

The state has seen increased foreign direct investment (FDI), growth in exports, and the rise of startups and MSMEs.

How has the COVID-19 pandemic impacted the state’s economy?

The pandemic caused disruptions but the state has shown resilience, with a focus on recovery and growth in sectors like agriculture and manufacturing.