Economy of Uttar Pradesh
The economy of Uttar Pradesh is the fifth largest of all the states of India. According to the state budget for 2017–18, Uttar Pradesh's gross state domestic product is. The largest Indian state, Maharashtra on the basis of nominal GDP, has an urban population of 50,818,259, while Uttar Pradesh has an urban population of 44,495,063. According to the 2011 census report, 22.76% of Uttar Pradesh's population lives in urban areas. The state has 7 cities with populations exceeding 1 million each. After partition in 2000, the new Uttar Pradesh state produces about 92% of the economic output of the old Uttar Pradesh state. In 2011, the Tendulkar committee reported that 29.43% of Uttar Pradesh's population is poor, while the Rangarajan committee reported that 39.8% of the population is poor.
In the tenth five-year planning period of 2002 and 2007, Uttar Pradesh registered an annual economic growth rate of 5.2%. In the eleventh period, between 2007 and 2012, Uttar Pradesh registered an annual economic growth rate of 7%. In 2012–13 and 2013–14, however, the growth rate decreased to 5.9% and 5.1%, respectively, one of the lowest in India. The state's debt was estimated at 67% of the gross domestic product in 2005. In 2012, the state was one of the highest receivers of overall remittances to India which stood at $0.1 billion, along with Kerala, Tamil Nadu, and Punjab. Additionally, the state government has selected seven cities for Metro train projects: Meerut, Allahabad, Gorakhpur, Agra, Kanpur, Lucknow, and Varanasi. The Lucknow Metro project was completed in September 2017. Uttar Pradesh is an agrarian state, and it contributed 8.89% in food grain production to the country in 2013–14.
Agriculture, livestock and fishing
See Agriculture in uttar pradeshUttar Pradesh is a major contributor to the national food grain stock. In 2013–14, this state produced 50.05 million tonnes of foodgrain, which is 18.90% of the country's total production. This is partly due to the fertile regions of the Indo-Gangetic plain and partly due to irrigation facilities such as canals and tube-wells. Lakhimpur Kheri is a densely populated sugar-producing district in the country. It has been the most common producer of food grains in India since the 1950s, due to high-yielding varieties of seed, greater availability of fertilizers and increased use of irrigation. Western Uttar Pradesh is more advanced in terms of agriculture as compared to the other regions in the state. The majority of the state's population depends upon farming activities. Wheat, rice, pulses, oilseeds and potatoes are major agricultural products. Sugarcane is the most important cash crop throughout the state. Uttar Pradesh is one of the most important states in India as far as horticulture is concerned. Mangoes are also produced in the state.
Uttar Pradesh supports about 15% of India's total livestock population. In 1961, its livestock comprised 15% cattle, 21% buffaloes, 13% goats, and 8% other livestock. Between 1951 and 1956 there was an overall increase of 14% in the livestock population. There are about 8,000 km² of water area, including lakes, tanks, rivers, canals, and streams. The fishing area in the state is over 2,000 km² and there are more than 175 varieties of fish.
Industry
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 7,263 in 1997–98 and there has been a visible decline in poverty in the state. However, nearly 40 percent of the total population lives below the poverty line.There are numerous types of minerals in the state and many industries have come up based on these minerals. There are a number of cement plants in Mirzapur in the Vindhya region, a bauxite-based aluminium plant in the Banda region and Sonbhadra region. In the hilly regions of the state, many non-metallic minerals are found which are used as industrial raw materials. Coal deposits are found in the Singrauli region. Nevertheless, the state is poor in mineral resources. The only considerable deposits are of limestone in Mirzapur district. These are being extracted and are used largely in cement manufacture.
Uttar Pradesh has a booming electronics industry, especially in the UP-Delhi-NCR and Lucknow-Kanpur Corridors where many electronics units are produced.
Cottage industries, such as handloom and handicrafts, have traditionally provided livelihood to a large number of people in the state. These industries include:
- Prayagraj developed into major industrial centre. Some of the most reputed industries in allahabad include Alstom, ITI Limited, Bharat Pumps & Compressors headquarters, Areva, Steel Authority of India Limited, Dey's medical, EMC Limited, Food Corporation of India, Triveni Structurals Limited and Cotton Mills subsidiary of Central Government. Industrial development in Prayagraj is increasing as the Government of India has approved Allahabad-Naini-Bara Investment Zone which is to be funded by the World Bank.
- Varanasi is a world-famous centre of handloom woven, embroidered textiles; the main products are Zari-embroidery and brocade-work on silk sarees. Lucknow is a centre of 'Chikan' embroidery, renowned for its grace and delicacy, a skill more than 200 years old. Uttar Pradesh produces about 15% of the total fabric production of the country, employs about 30% of the total workforce of artisans in India and is responsible for an annual production of about $0.1 million USD in the state.
- Varanasi is well known for manufacturing the diesel-electric locomotives at Diesel Locomotive Works. The workshop at DLW is further upgraded to manufacture electric locomotives for Indian Railways. It is the largest diesel-electric locomotives manufacturer in India.
- The state has two major production centres of leather and leather products, with over 11,500 units; Agra and Kanpur are the key centres. About 200 tanneries are located in Kanpur.
- Moradabad is renowned for brass work and has carved a niche for itself in the handicraft industry throughout the world. Lately, other products that are produced here like iron sheet metalwares, aluminium artworks, wood works and glasswares have become popular with the numerous foreign buyers, and are therefore being exported in large quantities. On an average Moradabad exports goods worth 30–40 billion each year, which constitutes 40% of total exports from India under this category.
- Meerut is one of the biggest gold market in Asia. It is one of the largest exporter of sports related items and music instruments of the country.
- Bulandshahr is renowned for Khurja Pottery worldwide. There are nearly 23 export oriented units and they are exported to foreign countries such as the United Kingdom, USA, Australia, New Zealand, United Arab Emirates, and others. The Sikandrabad industrial area, developed by UPSIDC, has a large number of national and multinational companies working here successfully.
Minerals and heavy industries
Mathura Refinery situated in Mathura is the only oil refinery in Uttar Pradesh, and is the 6th largest oil refinery in India.
Handloom and handicrafts
Handlooms and handicrafts are a very important source of income in UP. There are thousands of power looms and handlooms in the state, most of which are situated in eastern UP. Many people depend on it for their livelihood. Main centres in eastern UP include Tanda, Varanasi, Azamgarh, Bhadohi, Mirzapur,Mau and Mau Aima. In western UP some of the important centres are Meerut, Etawah, Etah and Kasganj. In eastern UP, Tanda is a small town with a population of approximately 150,000 people with over 100,000 power looms. The main products include Lungis, Gamchas, Stoles, Arabic Rumaal, and garment clothes.Services
The service industry plays a large role in the economy of Uttar Pradesh. It contributed nearly 49% of the gross state domestic product in 2017–18. Uttar Pradesh is the 'IT-Hub' of North India, with a share of software exports next to that of Karnataka. But unlike South Indian states, IT enterprises are limited to particular areas only, such as Noida, Greater Noida and Ghaziabad, which lie in the National Capital Region, commercial capital Kanpur and in the state capital Lucknow.Noida is also famous for TV News broadcasters. Almost all News channels such as ABP News, Zee News, NDTV and Mahua News are located in Film City.
Prayagraj city is home to glass and wire-based industry. The main industrial areas of Allahabad are Naini and Phulpur, where several public and private sector companies have offices and factories. Bharat Petroleum Corporation Limited, India's largest oil company, is constructing a seven-million-tonnes-per-annum capacity refinery in Lohgara with an investment estimated at ₹62 billion. Allahabad Bank, which began operations in 1865, Bharat Pumps & Compressors and A. H. Wheeler and Company have their headquarters in the city. Major companies in the city are Reliance Industries, ITI Limited, BPCL, Dey's Medical, Food Corporation of India, Raymond Synthetics, Triveni Sheet Glass, Triveni Electroplast, EMC Power Ltd, Steel Authority of India, HCL Technologies, Indian Farmers Fertiliser Cooperative, Vibgyor Laboratories, Geep Industries, Hindustan Cable, Indian Oil Corporation Ltd, Baidyanath Ayurved, Hindustan Laboratories.