Uttar Pradesh to Enter USD 1 Trillion Club | 11 Jan 2024

Why in News?

According to Uttar Pradesh Chief Minister Yogi Adityanath, Uttar Pradesh has emerged as the second largest economy in the country and the state was on course to achieve the USD 1 trillion economy target.

Key Points

• Due to the planned efforts of the last six and a half years, UP’s economy is in the best condition today.
• The state’s total Gross State Domestic Product, which stood at ₹16.45 lakh crore in 2021-22, has now surged to over ₹22.58 lakh crore in 2022-23.
  • With a 9.2% contribution to the national income, UP has emerged as the second-largest economy in the country, playing a pivotal role as the growth engine of the country.
  • UP’s growth rate in current and constant prices in 2021-22 was 20.1% and 9.8% against the country’s growth rate of 18.4% and 9.1% respectively.
  • Similarly, in 2022-23, the national growth rate of constant prices was recorded at 7.2%, against the state’s growth rate of 9.8% while the state’s growth rate of current prices was recorded at 14.3% during the period.
• Digital technology has been incorporated to improve the primary segment of the economy, with initiatives such as digital crop surveys being successfully implemented.
  • The area of cultivation and production of sugarcane increased by 26.8% in 2021-22, while horticultural crop production saw a substantial rise of 31.9%.
  • State-sponsored schemes aimed at achieving self-sufficiency in pulses and oilseeds in UP are yielding favorable results. However, there is a need to further enhance crop diversification and improve supply chain management.
• The state has secured the top position in milk production. Additionally, it ranks third in terms of progress in egg production achieving an annual growth rate of 12.80%.
• UP achieved rapid growth in the tertiary sector with growth in the hotels/restaurants, transport, communication, real estate, professional services, public services, defense, and other services. There has been an unprecedented development in services related to the tourism sector.
  • According to the Government of India report in 2023, UP got the distinction of having the highest number of tourist arrivals in 2022. In the financial year 2022-23, the state welcomed over 31.8 crore tourists, with Varanasi, Mathura, and Ayodhya emerging as major centers.
    • In addition to catering to domestic tourists, it is imperative to develop a comprehensive action plan to attract foreign tourists and for this, potential countries need to be identified and proper policies formulated.
• The principal secretary, planning department and representatives from the financial consulting company Deloitte presented detailed information about the current economic environment of the state. They elaborated on the present situation and potential future outcomes, industry expectations, and other relevant details sector-wise.
• To reach the USD 1 trillion target by 2027 it is imperative that all departments escalate their efforts. Enhanced planning and coordination are essential.