Economic Trajectory | Uttar Pradesh | 18 Sep 2024

Recently, the Economic Advisory Council to the Prime Minister (EAC-PM) report revealed the economic dominance of five states in India during the 1960s.

In the 1960s, five states, Uttar Pradesh, Maharashtra, West Bengal, Tamil Nadu, and Bihar, accounted for approximately 54% of India’s Gross Domestic Product (GDP).
Uttar Pradesh (then undivided) was the largest economic contributor among these states, contributing 14.4% of India’s total GDP.
Uttar Pradesh’s Economy:
- Gross State Domestic Product (GSDP) Growth:
  - In 2022-23, Uttar Pradesh’s GSDP (at constant prices) grew by 8.3%, down from 10.2% in 2021-22.
  - National GDP is estimated to grow at 7.2% in 2022-23.
- Sectoral Growth:
  - Agriculture sector: Grew by 10% in 2022-23 (at current prices), compared to 14% in 2021-22 (growth in 2021-22 was over a low base).
  - Manufacturing sector: Grew by 22% in 2022-23.
  - Services sector: Grew by 12% in 2022-23.
  - Contributions to the economy (at constant prices): Agriculture (24%), Manufacturing (30%), Services (46%).
- Per Capita GSDP:
  - Estimated at Rs 96,193 in 2022-23 (at current prices), with an annual growth of 8% since 2017-18.

The GSDP growth rates at constant prices of 2011-12 were: 4.7% (2012-13), 5.8% (2013-14), 4.0% (2014-15), 8.8% (2015-16), 11.4% (2016-17), 4.6% (2017-18), 6.3% (2018-19), 3.8% (2019-20), -5.5% (2020-21), and 4.2% (2021-22).
Share of UP in National GDP: The share of Uttar Pradesh (UP) in the national GDP is either constant or declining. For a trillion-dollar economy, UP's share should increase to 20%.
- The GDP of India at current prices increased from Rs.153.92 lakh crore in 2016-17 to Rs.236.64 lakh crore in 2021-22.
- The share of Uttar Pradesh (UP) in India's GDP declined from 8.4% in 2016-17 to 7.9% in 2021-22.
Widening Per Capita Income Gap: The gap between per capita income of India and UP has widened over the years. In 2011-12, UP's per capita income was about 50% of India's, but by 2021-22, it had decreased to 45.87%. This indicates that UP has not kept pace with national economic growth.
The projected GSDP in 2026-27 under alternative growth scenarios arranged in points:
- Very High (CAGR = 20%): Rs.42.5 lakh crore
- High (CAGR = 15%): Rs.35.8 lakh crore
- Moderate (CAGR = 12%): Rs.32.2 lakh crore
- Normal (CAGR = 10%): Rs.30 lakh crore

It is an non-constitutional, non-statutory, independent body constituted to give advice on economic and related issues to the Government of India, specifically to the Prime Minister.
The council serves to highlight key economic issues to the government of India from a neutral viewpoint.
- It advises the Prime Minister on economic issues like inflation, microfinance, and industrial output.
For administrative, logistic, planning and budgeting purposes, the NITI Aayog serves as the Nodal Agency for the EAC-PM.
Periodic Reports:
- Annual Economic Outlook.
- Review of the Economy.