UP leaps from 8th to 2nd in economy under Yogi’s leadership

Lucknow : Uttar Pradesh’s rapid economic transformation has become a focal point of national discourse. Once ranked seventh or eighth among Indian states in terms of economic strength, the state’s Gross State Domestic Product (GSDP) remained stagnant at around Rs 12,000 to Rs 12,500 crore for years—despite its rich natural and spiritual resources.

That changed dramatically in March 2017, when Yogi Adityanath assumed office as Chief Minister. Under his leadership, Uttar Pradesh’s economy has witnessed a historic resurgence. Today, the state boasts an economy worth Rs 27.5 lakh crore, making it the second-largest economy in India.

Uttar Pradesh now contributes 9.2 percent to the national GDP. Even more notably, the state’s GDP growth rate stands at 11.6 percent—significantly higher than the national average of 9.6 percent. CM Yogi Adityanath has repeatedly expressed his vision to make Uttar Pradesh the number one state economy by 2030. He reiterated this commitment during a public address in Bareilly on April 1.

Economic experts and institutions are now increasingly acknowledging that Uttar Pradesh has the potential to become the growth engine of a developed India. In a recent workshop organized by the Planning Department in Lucknow, former NITI Aayog Vice Chairman Dr. Rajiv Kumar stated that UP has all the ingredients for success — 56% of its population is young, the state has nine types of agricultural climate zones, and abundant water resources.

Dr. Kumar mentioned an action plan to turn districts into economic hubs — something the Yogi government has already been implementing. Flagship initiatives like One District One Product (ODOP) and One District One GI (Geographical Indication) are key parts of this plan. The state is even planning to launch One District One Cuisine to further boost local identity. ODOP has become one of the most successful schemes in the state and has been praised by Prime Minister Narendra Modi. Even countries like Indonesia have shown interest in it.

In terms of financial health, NITI Aayog has listed Uttar Pradesh as a “front-runner” state in its fiscal performance report. The Reserve Bank of India has ranked UP second in the country for tax collection. For the past five years, the state has maintained a revenue surplus, which means it is earning more than it spends. This has been made possible by cracking down on tax evasion and using digitization to increase transparency.

Another area of improvement is the Credit-Deposit (CD) ratio — the amount banks lend compared to deposits. It has risen from 46% in 2016–17 to 61% in 2024. The state aims to take this further to 67–70% in the current financial year. As UP’s economy grows stronger, banks are more interested in funding its projects. According to the RBI’s August 2023 bulletin, UP attracted the highest share of funding in the country, with a 16.2% contribution.

With Chief Minister Yogi Adityanath at the helm, Uttar Pradesh is charging ahead on the path to becoming a $1 trillion economy.