PR No – 64
10th February, 2025
New Delhi
Uttar Pradesh poised to become USD 1 trillion economy: PHDCCI
Ease of Doing Business in the state improves each day
Uttar Pradesh has emerged as the strong economic powerhouse of India’s economy with robust growth of GDP, Ease of Doing Business, attractive destination for investments and State of the art infrastructure, says the industry body, PHDCCI in a press statement issued today.
The research report prepared by PHDCCI on Uttar Pradesh – Marching towards USD 1 trillion economy indicates that state is poised to become USD 1 trillion economy.
Dr Ranjeet Mehta, Secretary General and CEO of PHDCCI while meeting Shri. Abhishek Prakash, IAS, CEO Invest UP and Secretary, Department of Infrastructure and Industry, said that drivers of the economy growth of Uttar Pradesh have become robust as economic and business environment in the state improves each day.
With the diverse industrial base, rich cultural heritage, and a growing consumer market, Uttar Pradesh’s Gross State Domestic Product (GSDP) has seen impressive growth, rising from ₹16.44 lakh crore in 2020-21 to over ₹25.47 lakh crore in 2023-24, said Dr Ranjeet Mehta.
The economy of the state between 2017-18 and 2019-20 (current prices) expanded at an average rate of 9.6%, and despite setbacks from the COVID-19 pandemic, Uttar Pradesh rebounded strongly, recording growth of 15.7% (average) from 2021-22 to 2023-24, said Dr Mehta.
PHDCCI projects that Uttar Pradesh is on a strong path towards USD 1 trillion economy, positioning it as a key economic hub for both domestic and international investors with its increased significant role in India’s journey towards Viksit Bharat by 2047, said Dr Mehta.
The state’s economy is driven by three key sectors: services, agriculture, and industry. The services sector, which includes tourism, real estate, finance, and hospitality, contributes 46.5% to the GSDP. Agriculture remains crucial, with two-thirds of the workforce engaged in farming, contributing 27% to the economy, he said.
The state government has introduced agricultural reforms, including improved irrigation, advanced crop varieties, and farmer training, which have boosted productivity and increased farmer incomes, he said.
Industry, contributing 26.5% to the GSDP, has become a strong accelerator for economic growth. Uttar Pradesh has emerged as a major manufacturing hub, particularly in sectors such as electronics, textiles, handicrafts and handlooms, automobiles, leather, food processing, pharmaceuticals, chemicals and among others, said Dr Mehta.
The state’s strategic location, coupled with significant investments in infrastructure, has enhanced its attractiveness as an industrial center. Moreover, Uttar Pradesh has made strides in improving its Ease of Doing Business (EoDB) ranking, simplifying regulations, and establishing a single-window clearance system, he said.
These reforms, along with enhanced digitalization and infrastructure development, have created a conducive environment for business, said Dr Mehta.
The state is significantly improving in the logistics infrastructure with the seamless connectivity in rail, road and waterways, he said.
Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Uttar Pradesh’s economic landscape, with nearly 90 lakh units contributing significantly to manufacturing output and employment generation.
The state government’s support for MSMEs with access to finance and research and innovation have boosted the competitiveness of the MSMEs, said Dr Mehta.
Uttar Pradesh has seen increased Foreign Direct Investment (FDI), with cumulative inflows reaching USD 1.68 billion between October 2019 and June 2024. The state ranks 10th in India for FDI, driven by investments in IT, textiles, electric vehicles, and logistics, he said.
The state’s export sector, particularly in handicrafts, which make up 60% of total exports, has been another strong growth driver, connecting the state with the global supply chains, he said.
The state has immense potential to enhance the volumes of exports in meat and edible meat offal, sugars and sugar confectionery, plastic and articles thereof, articles of leather, saddlery and harness; travel goods, handbags and articles of animal gut (other than silk-worm), footwear, gaiters and the like; parts of such articles, articles of iron or steel, machinery and mechanical appliances ,electrical machinery and equipment and parts thereof; sound recorders and reproducers, television, aircraft, spacecraft, and parts thereof, furniture bedding mattresses.
These products have been identified in the PHDCCI report on States’ Policy Conclave 2022 – Make in India, Make for the World: Mapping 75 potential exports products in States.
With its diverse economic base, expanding infrastructure, and focus on sustainability, Uttar Pradesh is set to become a key player in India’s journey toward becoming a developed nation by 2047, he said.
Going ahead, Uttar Pradesh needs continued investments in infrastructure, industry, and technology. Enhanced Public-Private Partnerships (PPPs) will help private sector to expand more for infrastructure development, said Dr Mehta.
Furthermore, the state’s focus on skill development, employment generation, and industrialization has resulted in a notable increase in per capita income, which reached ₹93,514 in 2023-24, reflecting a 14% growth from the previous year, said Dr Mehta.
Looking ahead, Uttar Pradesh’s dynamic economy, supported by strategic investments, industrial growth, and agricultural reforms, is well-positioned to contribute significantly to India’s development, said Dr Mehta.
The state has significant potential to attract investments in high-growth sectors like energy, agriculture, infrastructure, tourism, information technology (IT), electronics manufacturing, and textiles, he said.
The state is attracting both domestic and foreign investments with simplified regulations, reduced time to start a business and improved transparency, he said.
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Warm Regards,
Media Division, PHDCCI