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Economy of Uttar Pradesh


           The major economic activity in the state is agriculture and in 1991, 73 percent of the population in the state was engaged in agriculture and 46 percent of the state income was accounted for by agriculture. UP has retained its pre-eminent position in the country as a food-surplus state. The production of foodgrains has increased from 14.5 million metric tons in 1960-61 to 42.5 million tons in 1995-96, showing an average annual growth rate of 3.1 percent, which is much higher than the population growth rate. At present, the new Uttar Pradesh state produces about 92% of the output of the old Uttar Pradesh state of prior to 1947 partition.

UP has witnessed rapid industrialization in the recent past, particularly after the launch of policies of economic liberalization in the country. As of March 1996, there were 1,661 medium and large industrial undertakings and 296,338 small industrial units employing 1.83 million persons. The per capita state domestic product was estimated at Rs 7,263 in 1997-98 and there has been visible decline in poverty in the state. Yet, nearly 40 percent of the total population lives below the poverty line. Uttar Pradesh's gross state domestic product for 2004 was $339.5 billion by PPP and $80.9 billion by Nominal, making it the second largest economy in India after Maharashtra and a bigger economy than many of the world's big economic players like Israel, Switzerland and Hong Kong.

Uttar Pradesh is a major contributor to the national foodgrain stock. Partly this is due to the fertile regions of the Indo-Gangetic plain and partly owing to irrigation measures such as the Ganga Canal and tubewells. Lakhimpur Kheri is the largest sugar producing district in the country. It is also home to 78% of national livestock population. This chart shows the national share of major food commodities from Uttar Pradesh.


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