Introduction to Economy of Uttar Pradesh

The economy of Uttar Pradesh, with a geographical area of 24.093 million hectares, is agriculture dominated with about approximately 80% of total geographical area as agriculture land. The agriculture sector contributes about 40% of the State GDP and 75% of employment. An estimated 35% of the State population is living below poverty line. About 70% of agriculture is dependent on irrigation. The net and gross sown area in the State is 16.68 and 25.52 million hectares respectively.

With a GSDP of Rs.11, 45, 234 crores in 2015-162, Uttar Pradesh is the third largest economy of India contributing 8.4% to the country’s economy.

Uttar Pradesh has a number of locally specialised business clusters such as sports items in Meerut, brassware in Moradabad, perfumes in Kannuaj, leather in Kanpur, shoes in Agra, embroidered sarees in Varanasi, carpet in Bhadohi, chikan work in Lucknow etc. Uttar Pradesh is also amongst the top manufacturing destinations in India contributing more than 8% of national manufacturing output. The state is a leading electronic hardware exporter in the country and has also emerged as a key hub for IT/ ITeS and service sector including software, captive business process outsourcing (BPO) and R&D services. The tertiary sector has been driven by trade, hotels, real estate, finance, insurance, transport, communications and other services.
The net and gross irrigated areas from all sources are 13.12 and 18.94 million hectares respectively with about 11.7 million of crops land currently irrigated by surface water systems at an average cropping intensity of about 100%.

It is the fifth largest state of India. It accounts for 6.88 percent of total area of the country. The population of the state was about 200 million as per census of 2011, which accounted for 16.49 percent of the total population of India. Uttarakhand was also a part of Uttar Pradesh till November, 2000. The state is divided into 4 divisions, namely. Western (30 districts), Eastern (28 districts), Central (10 districts) and Bumdelkhand (7 districts).
In 2016-17,Uttar Pradesh’s GSDP was Rs 12.37 lakh crore. After the economic reforms the economy of Uttar Pradesh has developed at a great phase with a greater focus on the secondary and tertiary sector which is clearly visible by the following developments:-

MANUFACTURING

• 1,43,617 Industrial units (MSME and Heavy units) already set up during the 12h FiveYearPlan(July2015)with a total investmentot INR21.956Cr.
• 53,242 (MSME and Heavy units) established during FY 2014-15 with an investment of INR 7.671 Cr. and employment generation ot 4.86,963.
• Total capital Investment ol INR 17,533 Cr. in MSMEs during 12′ Five Year Plan
• 12th Five Year Plan envisages industrial growth rate ol 11.2% p.a. and an estimated investment ol INR 3.17.754 Crores in manufacturing sector
• UP has about 25 lakh Handicraft Artisans in different crafts

Infrastructure

• UP accounts tor about 7.5 % ot the total National Highway (NH) network of the Country
• 47 National Highways connect the state with 9 neighbouring states and other parts of India
• State has largest Ralway network in the country spanning over 8,763 KM
• International Airports at Lucknow and Varanasi and 2 other domestic airports at Alahabad and Gorakhpur.
• Metro Rail Link from Noida to Greater Noida with a total Length of 29.707 km
• 302.2 km long Agra to Lucknow, the longest Access controled Expressway project in the country, is under construction and is expected to be completed in a record time of 22 months.
• Lucknow Metro work on ful swing. The expected completion date for the 8.5 km priority section from Transport Nagar to Charbagh is December 2016. a record time of 28 months.

IT and Service Industry

6th largest software exporter at INR13,352 crores (2013-14) with a 4.88 % share of Indian exports .Noida and Greater Noida have emerged as major IT-BPM Hubs

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