State PCS - Uttar Pradesh (UP PCS)

• 13 Aug 2025

UP: Second Fastest Growing Economy

Why in News? 

As per data of  Ministry of Statistics and Programme Implementation, Uttar Pradesh (UP) has emerged as the second fastest-growing state in India in terms of Gross State Domestic Product (GSDP), with its growth rate accelerating from 5.5% to 8.9%. 

• Tamil Nadu holds the top position with a GSDP growth rate of 11.19%. Small states like Arunachal Pradesh and Meghalaya have also posted significant growth rates of 9.66%. 

Key Points About Economic State of UP 

• Uttar Pradesh ranks as India's third-largest economy after Maharashtra and Tamil Nadu (NITI Aayog). 
  • UP has set an ambitious goal of becoming a $1 trillion economy by 2029.  
  • It has identified 10 key sectors critical to achieving this target, with a focus on law and order, agriculture, infrastructure, industrial development, social security, and more. 
• In FY 2023–24, Uttar Pradesh's GSDP stood at ₹25.48 lakh crore, up from ₹22.58 lakh crore in the previous fiscal year. 
• The state experienced a 23% increase in per capita income from FY 2016–17 to FY 2019–20. 
• The agriculture sector's contribution to GSDP increased from 13.7% to 16.8% in FY 2023–24.  
  • Meanwhile, the secondary sector accounts for 23% of the GSDP, while the tertiary sector contributes 45%. 
• Uttar Pradesh contributes 8% to India's national GDP. 

UP’s MSME Industrial Estate Management Policy 2025

Why in News?

The Uttar Pradesh government has given its approval for the Micro, Small, and Medium Enterprises (MSME) Industrial Estate Management Policy (2025), designed to promote industrial growth by simplifying land allocation and improving facilities for businesses. 

• The new policy is set to replace 19 outdated government orders issued since 1978. 

Key Features of the Policy

• Land Allocation: Land, sheds, and plots in industrial estates will be allocated via lease/rent through auction or e-auction modes. 
  • Successful bidders will pay 10% of the reserved price as earnest money, with the remaining balance payable in lump sum or installments over one to three years. Immediate payments will be eligible for a 2% discount. 
• Reservation for SC/ST Entrepreneurs: 10% of all plots and sheds will be reserved for SC/ST entrepreneurs.  
  • If no eligible applicant comes forward, the plots may be reallocated to other categories to ensure continuous development. 
• Price Structure: The policy introduces fixed reserved prices for industrial plots in various regions for FY 2025-26, including Madhyanchal, Pashchimanchal, Bundelkhand and Purvanchal. 
  • The rates will increase by 5% annually, starting from 1st April each year. 
• Preferential Rates for Anchor Units: Special rates may be offered to anchor units expected to drive significant MSME growth in the estates. 
• Infrastructure Facilities: Industrial estates will be equipped with essential amenities, including common facility centers, power substations, fire stations, women's hostels, dormitories, crèches, eco-friendly parks, training institutes, and health services. 
• Standard Operating Procedures (SOPs): The Commissioner and Director of Industries will oversee the implementation of SOPs for land allocation, property transfer, revitalization, subletting, and surrender. 

Classification	Micro	Small	Medium
Manufacturing and Services Enterprises	Investment: Not more than Rs. 2.5 crore   Annual Turnover: not more than Rs. 10 crore	Investment: Not more than Rs. 25 crore   Annual Turnover: Not more than Rs. 100 crore	Investment: Not more than Rs. 125 crore   Annual Turnover: Not more than Rs. 500 crore