Economy of Uttar Pradesh

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Economy of Uttar Pradesh
Seal of Uttar Pradesh.svg
GDP15.80 lakh crore (US$230 billion)(2019–20 est.)[1]
GDP rank6th
GDP growth
7% (2018–19 est.)[1]
GDP per capita
57,480 (US$830) (2019–20)[1]
GDP per capita rank
GDP by sector
Agriculture (27%)
Industry (26%)
Services (47%) (2016–17)[1]
Public finances
30% of GSDP (2019–20 est.)[1]
-46,911 crore (US$−6.8 billion) (2.97% of GSDP) (2019–20 est.)[1]
Revenues3.97 lakh crore (US$57 billion)(2019–20 est.)[1]
Expenses4.80 lakh crore (US$69 billion)(2019–20 est.)[1]

The economy of Uttar Pradesh is the fourth largest of all the states of India. According to the state budget for 2017–18, Uttar Pradesh's gross state domestic product is 16.89 lakh crore (US$240 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, 100% 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 (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 tonnes 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.[4] 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.[5]

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[6]
1980–81 15,554 crore (equivalent to 2.7 trillion or US$39 billion in 2018)
1985–86 27,748 crore (equivalent to 3.1 trillion or US$44 billion in 2018)
1990–91 55,506 crore (equivalent to 4.1 trillion or US$59 billion in 2018)
1995–96 106,249 crore (equivalent to 4.7 trillion or US$68 billion in 2018)
2000-01 173,068 crore (equivalent to 5.3 trillion or US$77 billion in 2018)
2005-06 241,196 crore (equivalent to 6.1 trillion or US$89 billion in 2018)
2010-11 532,218 crore (equivalent to 8.9 trillion or US$130 billion in 2018)
2015–16 906,909 crore (equivalent to 10 trillion or US$150 billion in 2018)
2017–18 1,446,000 crore (US$210 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 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 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, Faizabad, 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), commercial capital Kanpur 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.[citation needed]

Natural resources[edit]

Uttar Pradesh is divided into three natural regions: Bhabar and Terai, the plain of the Ganga and the Yamuna rivers, and the southern plateau. Important minerals include diaspore, sulfur and magnesite, pyrophyllite, silica sand and limestone.



Uttar Pradesh has one of the lowest literacy rates among Indian states. With just 67.68% literacy rate, UP is ranked 29th in India according to the 2011 census.

See also[edit]


  1. ^ a b c d e f g h i "Uttar Pradesh Budget Analysis 2019–20" (PDF). PRS Legislative Research. Retrieved 15 February 2019.
  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 9 July 2014.
  4. ^ "Uttar Pradesh | History, Government, Map, & Population". Encyclopedia Britannica. Retrieved 6 November 2018.
  5. ^ "UP Agriculture – Need for Transparent Agricultural Scheme". Get news on PM's schemes, central and state government schemes, central ministries and government departments. 3 November 2018. Retrieved 6 November 2018.
  6. ^ "Table 5 : Net State Value Added – State-Wise (At Current Prices)" (PDF). Reserve Bank of India. 15 September 2017. Retrieved 11 January 2018.