The Rise of Uttar Pradesh as India’s Second-Largest Economy

In a significant development for India’s economy, Uttar Pradesh (UP) has emerged as the country’s second-largest economy, with a 9.2% share in the nation’s GDP. This achievement marks a tremendous leap forward for the state, which was previously ranked third in terms of GDP share. Maharashtra continues to hold the top position with a substantial 15.7% share. This report, based on data from the investment and stock market tracking platform ‘soic.in,’ highlights the rapid progress made by UP in various sectors under the leadership of Chief Minister Yogi Adityanath.

Economic Landscape: UP’s Growing Share in GDP

According to the report, UP’s share in India’s GDP has surged to 9.2%, surpassing states like Tamil Nadu (9.1%), Gujarat (8.2%), and West Bengal (7.5%). The state’s remarkable growth can be attributed to the concerted efforts made in multiple areas, including industrial development, infrastructure enhancement, and improvements in law and order.

The Path to Progress

Under the dynamic leadership of Chief Minister Yogi Adityanath, Uttar Pradesh has witnessed significant advancements in all spheres over the past seven years. Organized crime has been effectively curbed, paving the way for a safer and more secure environment. Simultaneously, the industrial sector has experienced rapid growth, garnering attention from investors both within India and globally. This progress has catapulted UP from the 14th position to the second spot in the ‘Ease of Doing Business’ rankings.

Investment Proposals and Employment Opportunities

The state’s commitment to development has attracted investment proposals worth over Rs 40 lakh crore through the Global Investors Summit 2023 (GIS 2023). These proposals, once implemented, are expected to create more than one crore employment opportunities in Uttar Pradesh. The state’s proactive approach towards attracting investments and creating a conducive business environment has yielded fruitful results, positioning it as a key player in India’s economic growth story.

Strengthening Financial Indicators

Uttar Pradesh has witnessed notable improvements in its financial indicators. The loan-deposit ratio of banks has increased from 42-43% to an impressive 56%, with further efforts underway to raise it to 60%. This upward trend reflects the growing confidence of financial institutions in the state’s economy. Moreover, UP is now a revenue surplus state, with 56% of its population gainfully employed. The establishment of around 96 lakh Micro, Small, and Medium Enterprises (MSMEs) further contributes to the state’s economic prosperity.

Infrastructure Development: Fueling UP’s Growth

A robust infrastructure is a crucial driver of economic growth. Uttar Pradesh has made significant strides in this domain, with the government undertaking ambitious projects to enhance connectivity and facilitate trade and commerce.

Airports and Aviation

The state is home to five domestic and three international airports, providing seamless connectivity for both domestic and international travelers. Notably, the upcoming Noida International Airport in Yamuna Expressway Industrial Development Authority (YEIDA) or Yamuna City is set to become Asia’s largest airport. This landmark project will alleviate air traffic congestion at the Indira Gandhi International Airport in Delhi and further bolster UP’s infrastructure.

Expressways and Road Network

UP boasts an extensive network of expressways and roads, facilitating efficient transportation within the state and beyond. The Yamuna and Agra Expressways connect the capital city of Lucknow to Delhi, reducing travel time considerably. The Purvanchal and Bundelkhand Expressways will enhance connectivity to more distant cities, promoting trade and commerce across the state. Furthermore, the proposed Ganga Expressway will link key export hubs, optimizing freight movement and reducing transportation costs.

Railways and Metro Projects

Uttar Pradesh boasts the largest railway network in India, spanning almost 9,000 kilometers. This extensive network, fully electrified, plays a pivotal role in connecting various parts of the state. The government has also prioritized the development of metro rail projects, with operational systems in Lucknow and Noida, and ongoing projects in Kanpur, Agra, Meerut, Gorakhpur, Bareilly, Prayagraj, and Varanasi. The introduction of the Rapid Rail Transit System between Delhi and Meerut will further enhance connectivity and expedite the movement of manpower.

Reforms and Transformation

The transformation of Uttar Pradesh from a “BIMARU state” to an investment-friendly and progressive state can be attributed to the comprehensive reforms undertaken by the Yogi Adityanath government. These reforms have facilitated a favorable business environment, attracting both domestic and foreign investments.

Ease of Doing Business

UP’s remarkable rise in the ‘Ease of Doing Business’ rankings, from the 14th position to the second, showcases the government’s commitment to streamlining bureaucratic processes and removing obstacles for businesses. The simplification of procedures and the introduction of online platforms have made it easier for entrepreneurs to set up and operate their ventures in the state.

Investment Inflow and Exports

The Global Investors Summit 2023 has been instrumental in attracting investment proposals worth Rs 40 lakh crore. This influx of investments is expected to boost various sectors, including manufacturing, infrastructure, and technology. Additionally, the state’s exports have reached a value of Rs 2 lakh crore, contributing significantly to its economic growth.

Employment Generation and MSMEs

Uttar Pradesh has witnessed a rise in employment opportunities, with 56% of its population engaged in various sectors. The establishment of 96 lakh formal and informal MSMEs has played a crucial role in job creation and economic empowerment. These enterprises contribute to the overall development of the state and provide a foundation for sustainable growth.

Conclusion

Uttar Pradesh’s transformation into India’s second-largest economy is a testament to the state’s relentless pursuit of progress under the leadership of Chief Minister Yogi Adityanath. The remarkable growth in UP’s share of the nation’s GDP, along with significant improvements in infrastructure and business-friendly reforms, has positioned the state as a key player in India’s economic landscape. With ongoing efforts to attract investments, enhance connectivity, and create employment opportunities, Uttar Pradesh is poised to contribute significantly to India’s journey towards becoming a $1 trillion economy by 2027.

Disclaimer: The information provided in this article is based on the references cited, and the views expressed are those of the author.