Uttar Pradesh First-Ever Economic Survey Charts $1 Trillion Economy Roadmap | 12 Feb 2026

Why in News? 

The Uttar Pradesh government tabled its first-ever Economic Survey 2025-26 in the state legislature, outlining a data-driven roadmap to transform India’s most populous state into a $1 trillion economy through investment-led growth, enhanced infrastructure, sectoral expansion, and policy reforms. 

Key Points: 

Macro-Economic Snapshot 

• Target Economy Size: The survey projects Uttar Pradesh’s economy to grow to $1 trillion (approx. ₹83 lakh crore) over the medium term by strengthening investments, infrastructure, and productivity. 
• GSDP Growth: Uttar Pradesh’s Gross State Domestic Product (GSDP) has grown at a compound annual growth rate (CAGR) of 10.8%, rising from ₹13.30 lakh crore (2016-17) to ₹30.25 lakh crore (2024-25) and is projected to reach ₹36 lakh crore in 2025-26.  
• Investment Pipeline: The state has built an investment pipeline exceeding ₹50 lakh crore in industrial proposals, reflecting strong domestic and global investor interest. 
• Infrastructure Focus:  
  • Uttar Pradesh is positioning itself as India’s expressway hub with 22 expressways, has the largest rail network in the country, and plans to expand its aviation ecosystem to 24 airports, including five international ones. 
• Industrial Diversification:  
  • The number of registered factories has crossed 30,000, with industrial gross value added growing by 25%, highest among major states.  
  • Sectoral hubs are being promoted (e.g., AI in Lucknow, drone manufacturing in Kanpur, IT and electronics in Noida).  
  • Digital: UP ranks 4th in the startup ecosystem. 
  • Cluster-Based Development: 
    • Lucknow: AI City & Capital Region. 
    • Kanpur: Drone Manufacturing & Testing Hub. 
    • Noida: IT, Electronics & Data Centers. 
    • Bundelkhand: Defense Industrial Corridor. 
• Agriculture and Allied Growth:  
  • Agriculture continues to lead with Uttar Pradesh remaining the largest food grain producer; irrigation, crop diversification, and support programmes have boosted productivity and farm incomes. 
  • Milk Production: Contributes 15.66% of India's total milk output (Highest in India). 
  • National Share: UP contributes 20.6% to India's total foodgrain output. 
  • Rankings: UP is the largest producer of sugarcane, milk, and potatoes in India  
  • Focus: Seed parks (Lucknow), crop diversification (Pulses/Oilseeds mission). 
  • Productivity:Gross Value Added (GVA) per hectare increased from ₹0.98 lakh (2017-18) to ₹1.73 lakh (2024-25). 
    • Crop intensity has risen to 193.7%. 
  • Irrigation: Irrigated area expanded to 2.76 crore hectares in 2024-25  
• Public Finance & Fiscal Health:  
  • The state budget has more than doubled over nine years to ₹8.33 lakh crore for 2025-26, own tax revenue increased 2.5 times, and the debt-to-GSDP ratio stands at a favorable 28%. 
  • Fiscal Deficit: Successfully capped at 3% of GSDP. 
  • Revenue Surplus: Projected at 2.6% of GSDP, indicating strong financial health. 
  • Tax Revenue: Own tax revenues have increased 2.5 times to ₹2.09 lakh crore.  
    • Excise revenues specifically have tripled in under a decade. 
  • Debt Status: The Debt-to-GSDP ratio stands at 28%, which is lower than the national average, providing room for capital expenditure. 
• Human Development Indicators:  
  • Per capita income doubled to ₹1,09,844 (2024-25) and is expected to reach ₹1,20,000 (2025-26). 
  • Uttar Pradesh also leads in coverage under Ayushman Bharat and Jan Dhan accounts, reflecting improved social inclusion. 
• Export & Digital Performance:  
  • The state climbed to 4th position in the Export Preparedness Index 2024, ranked 1st among landlocked states, and topped national rankings in e-Prosecution while expanding direct benefit transfer systems. 
• Energy & Urban Planning:  
  • The share of solar power in installed capacity expanded, and plans for the Lucknow State Capital Region and 100 new townships aim to manage rapid urban growth and future demographic shifts. 
• Triple “S” Framework: The government’s investment strategy is based on Safety, Stability, and Speed to improve law and order, policy certainty, and speedy clearances via digital platforms such as Nivesh Mitra. 
• Future Outlook & Urbanization: 
  • Urbanization: Urban population is projected to reach 35.8% by 2046. 
  • New Developments: 
    • Creation of a Lucknow State Capital Region. 
    • Plans for 100 new townships to manage urban expansion. 
• Roadmap for Development: The Economic Survey institutionalises annual economic assessment and offers a comprehensive, data-backed framework for policy planning, fiscal management, and performance monitoring to achieve sustainable growth.