Mahakumbh 2025 Brings Economic Milestone for Uttar Pradesh!

Pathway to Prosperity: UP's March Towards a $1 Trillion Economy

The holy month of Mahakumbh 2025 has brought happy news for the people of Uttar Pradesh and Chief Minister Yogi Adityanath’s government as the state is emerging as a formidable economic powerhouse in India. Driven by robust GDP growth, an improving business environment, increasing investments, and world-class infrastructure, the state is making significant strides towards economic expansion, according to a research report by the PHD Chamber of Commerce and Industry (PHDCCI). The report, titled Uttar Pradesh – Marching Towards a USD 1 Trillion Economy, highlights the state's trajectory toward achieving this ambitious goal.

Dr. Ranjeet Mehta, Secretary General and CEO of PHDCCI, met with Shri Abhishek Prakash, IAS, CEO of Invest UP and Secretary of the Department of Infrastructure and Industry, to discuss the state's economic progress. He emphasized that Uttar Pradesh's economic drivers have strengthened considerably, leading to an increasingly business-friendly environment.

UP's Impressive Economic Growth

With a diverse industrial base, a rich cultural heritage, and a rapidly growing consumer market, Uttar Pradesh's Gross State Domestic Product (GSDP) has surged from ₹16.44 lakh crore in 2020-21 to over ₹25.47 lakh crore in 2023-24. Between 2017-18 and 2019-20, the state’s economy expanded at an average rate of 9.6%. Despite setbacks from the COVID-19 pandemic, Uttar Pradesh demonstrated remarkable resilience, recording an average growth rate of 15.7% from 2021-22 to 2023-24.

Sectoral Contributions to Growth

The state's economic growth is powered by three key sectors:

• Services Sector: Contributing 46.5% to the GSDP, this sector includes tourism, real estate, finance, and hospitality.

• Agriculture: Accounting for 27% of the state economy, agriculture remains crucial, employing nearly two-thirds of the workforce. Government-led reforms such as improved irrigation, advanced crop varieties, and farmer training programs have enhanced productivity and farmer incomes.

• Industry: Comprising 26.5% of the GSDP, Uttar Pradesh has become a major manufacturing hub, particularly in electronics, textiles, automobiles, leather, food processing, pharmaceuticals, and chemicals.

Investment and Infrastructure Development

Uttar Pradesh's strategic location and significant investments in infrastructure have bolstered its appeal as an industrial hub. The state has taken notable steps to enhance its Ease of Doing Business (EoDB) ranking by simplifying regulations and introducing a single-window clearance system. Additionally, advancements in digitalization and logistics infrastructure have created a highly conducive business environment.

MSMEs: The Backbone of the Economy

With nearly 90 lakh Micro, Small, and Medium Enterprises (MSMEs), the state has solidified its role as a manufacturing and employment-generation hub. Government support through financial access and research incentives has significantly boosted MSME competitiveness.

Rising Foreign Investments and Exports

Foreign Direct Investment (FDI) inflows into Uttar Pradesh reached USD 1.68 billion between October 2019 and June 2024, positioning the state 10th in India for FDI. The state has attracted investment in high-growth sectors like IT, textiles, electric vehicles, and logistics.

Exports have also seen substantial growth, particularly in handicrafts, which account for 60% of total exports. Other key export products include meat and meat products, sugar, leather goods, iron and steel products, electrical machinery, and pharmaceuticals. These products have been identified in PHDCCI’s States’ Policy Conclave 2022report as having significant global demand potential.

Pathway to a USD 1 Trillion Economy

Uttar Pradesh’s roadmap to a USD 1 trillion economy involves sustained investments in infrastructure, industry, and technology. Public-Private Partnerships (PPPs) will play a crucial role in accelerating infrastructure development. Moreover, the state's focus on skill development, employment generation, and industrial expansion has led to an increase in per capita income, which reached ₹93,514 in 2023-24, reflecting a 14% year-on-year growth.

Rising Uttar Pradesh: Future Growth Prospects

The state’s business-friendly policies, infrastructure advancements, and investor-friendly regulations make it an attractive destination for both domestic and international investments. High-growth sectors such as energy, agriculture, IT, electronics manufacturing, tourism, and textiles are expected to drive future economic expansion.

As Uttar Pradesh continues on its growth trajectory, it is set to play a crucial role in India’s journey towards Viksit Bharat 2047, further cementing its status as a key player in the national and global economy.