Uttar Pradesh

Uttar Pradesh

Uttar Pradesh (UP), located in northern India, is the most populous state in the country with over 241 million residents. It has rapidly transformed into a key economic powerhouse, currently ranking as the second-largest economy among Indian states with a projected Gross State Domestic Product (GSDP) of approximately ₹30.8 lakh crore for the fiscal year 2025-26, reflecting a robust growth rate of 12%. Historically known for its agricultural base, especially sugar production, UP's economy is now diversified with significant contributions from services, manufacturing, and infrastructure development. The state benefits from strategic geographic positioning, extensive connectivity through 48 national highways, six airports, and a strong rail network linking major urban centers, making it an attractive destination for business and investment.

Business Environment

The government of Uttar Pradesh has prioritized fiscal discipline and governance reforms, leading to improved fiscal health and a revenue surplus of 2.6% of GSDP in 2025-26. The state exhibits a pro-investment climate with considerable focus on digital infrastructure, Direct Benefit Transfer (DBT) systems, and attracting Foreign Direct Investment (FDI). With a large income tax base and growing industrial clusters, UP is emerging as a hub for innovation and entrepreneurship. Policy initiatives, including the Solar Energy Policy aiming for 16,000 MW renewable capacity by 2027, underscore the state's commitment to sustainable growth.

Key Industries, Business Hubs, and Opportunities

• Information Technology (IT) and Digital Services with growing tech parks and innovation centers

• Agro-based industries and Food Processing leveraging extensive cultivable land

• Light Engineering and Manufacturing sectors, including textiles, leather goods, and sports goods

• Tourism and Hospitality, boosted by cultural heritage sites and large-scale events such as the Kumbh Mela

• Renewable Energy, especially solar power projects aligned with state energy policies

• Real Estate, Insurance, and Financial Consultancies supporting a dynamic service sector

Tourism and Cultural Significance

Uttar Pradesh is renowned for its rich cultural heritage and religious importance, hosting iconic sites such as the Triveni Sangam in Prayagraj, and historic cities like Varanasi and Agra. The state hosts major international events like the Kumbh Mela, which in 2025 attracted over 400 million visitors, creating significant opportunities in trade, hospitality, and allied sectors. This influx stimulates local economies and offers diverse business prospects in tourism-related services.