Overview of Economy of UP

Introduction

The Uttar Pradesh government is taking steps to achieve the challenging goal of turning Uttar Pradesh’s economy into a one-trillion-dollar economy in the next five years. To tackle this formidable challenge, the government has undertaken efforts to provide a ‘booster dose of investment’ to the economy this year.

Uttar Pradesh, previously the fourth-largest economy among the states of the country, has now risen to the third position, surpassing Gujarat. Uttar Pradesh contributes eight percent to the country’s economy.

Main features of economy : UP

We can summarize the distinctive features of the economic situation in Uttar Pradesh as follows:

Agriculture

Uttar Pradesh is a prosperous state from the perspective of agriculture and animal husbandry, thanks to its favorable geographical features. According to the 2011 census, 59.3 percent of the state’s total working population is engaged in agriculture and related sectors, with 29.0% as farmers and 30.3% as agricultural laborers.

In the fiscal year 2022-23, agriculture contributed 26% to the state’s Gross State Domestic Product (GSDP), and the agricultural growth rate for the same year reached 18.2%. This is why agriculture is often referred to as the backbone of Uttar Pradesh’s economy. Uttar Pradesh holds the top position among all states in the country in terms of total food grain production.

Industry

Uttar Pradesh is characterized by moderate industrial development. The limited availability of minerals, infrastructure, and capital investment has restricted the growth of non-agricultural industries. In contrast, agriculture-based and small-scale cottage industries have flourished. Agriculture-based industries in the state encompass textiles, sugar, vegetable oil, and more. Additionally, Uttar Pradesh hosts significant sectors such as cement, textiles, leather, alcohol, paper, glass, chemicals, agricultural machinery, and glass, among others.

Service sector

The services sector is the fastest-growing segment, contributing 47.93% to the GSDP. This sector encompasses a wide range of activities, including trade, transportation, tourism, finance, and IT. Uttar Pradesh’s appeal as a tourist destination is enhanced by iconic sites such as the Buddhist pilgrimage, Varanasi’s Kashi Vishwanath Temple, Mathura’s Vrindavan, and the Taj Mahal, among others.

Challenges

Obstructive Factors in the Economy of Uttar Pradesh:

1. Population – It is the most populous state in India.
2. Poverty – The state has a poverty rate of 29.43% (2011-12).
3. Regional Disparities – The state is divided into four economic regions, and there are significant regional disparities. For example, while the western region has developed, the Bundelkhand region lags behind.
4. Limited Basic Infrastructure Development.
5. Agriculture Sector – There is also a significant disparity in the agriculture sector; for instance, western Uttar Pradesh benefited from the Green Revolution, while other parts of the state did not, coupled with high population pressure and lower productivity.

Some important economic facts Poverty in the state stands at 29.43% (2011-12). Contribution to the state’s total domestic product (2022-23): Primary sector – 25.33% Secondary sector – 26.74% Tertiary sector – 47.93% Per capita income (2021-22): At current price – ₹70,792 At constant price (2011-12) – ₹42,525 Uttar Pradesh generates the highest revenue in the country through central taxes. Uttar Pradesh contributes approximately 8.8% to India’s economy, ranking third, with Maharashtra and Tamil Nadu occupying the first and second positions, respectively. According to the sixth economic census (2012-13): Uttar Pradesh secures the first position in India with a contribution of 11.43% to the total enterprises in the country. It ranks second in providing employment opportunities in the country, following Maharashtra. In terms of commodity exports, Uttar Pradesh holds the fifth position in the country with a contribution of 4.99% (2021-22).

Agriculture and Animal Husbandry in Uttar Pradesh