Economy
Main article: Economy of Uttar Pradesh See also: List of conglomerates in Uttar Pradesh| Net State Domestic Product at Factor Cost at Current Prices (2004–05 Base)
figures in crores of Indian Rupees |
|
| Year | Net State Domestic Product |
|---|---|
| 2004–2005 | 229,074 |
| 2005–2006 | 256,699 |
| 2006–2007 | 294,031 |
| 2007–2008 | 332,352 |
| 2008–2009 | 384,718 |
| 2009–2010 | 453,020 |
In terms of net state domestic product (NSDP), Uttar Pradesh holds the third largest economy (2011–2012) in India, with an NSDP of 708,000 crore (US$128.86 billion).
Agriculture is the leading occupation in Uttar Pradesh. Wheat is the state's principal food crop and sugarcane is the main commercial crop. About 70% of India's sugar comes from Uttar Pradesh. State industries are localised in the Kanpur region, the fertile purvanchal lands and the Noida region. The Mughalsarai is home to a number of major locomotive plants. Major manufacturing products include engineering products, electronics, electrical equipment, cables, steel, leather, textiles, jewellery, frigates, automobiles, railway coaches, and wagons. More small-scale industrial units are situated in Uttar Pradesh than in any other state, with 12 percent of over 2.3 million units.
The Uttar Pradesh Financial Corporation (UPFC) was established in the year 1954 under the SFCs Act of 1951 mainly to develop small and medium scale industries in the state. UPFC provides financial assistance to new and existing units undergoing diversification, modernization, expansion, or acquisition of fixed assets such as land, buildings, and machinery. The UPFC also provides working capital to existing units with a sound track record and to new units under a single window scheme. As of July 2012, due to financial constraints and directions from the state government, lending activities have been suspended except for State Government Schemes. Nevertheless, unemployment, corruption and an inconsistent electricity supply remain among the major problems of the state. The state also has "marked income inequality".
In 2009–10, the tertiary sector of the economy (service industries) was the largest contributor to the gross domestic product of the state, contributing 44.8% of the state domestic product compared to 44% from the primary sector (agriculture, forestry, and tourism) and 11.2% from the secondary sector (industrial and manufacturing). During the 11th five-year plan (2007–2012), the average gross state domestic product (GSDP) growth rate was 7.28%, lower than 15.5%, the average for all states of the country. The state’s per capita GSDP was 29,417 (US$535.39), lower than the national per capita GSDP of 60,972 (US$1,109.69). The state's total financial debt stood at 200,009 crore (US$36.4 billion) as of 2011. Labour efficiency is higher at an index of 26 than the national average of 25. The economy also benefits from the state's tourism industry.
The state is attracting foreign direct investment which has mostly come in the software and electronics fields; Noida and Lucknow is becoming a major hub for the information technology (IT) industry. Sonebhadra, a district in eastern Uttar Pradesh, has large-scale industries. Its southern region is known as the "Energy Capital Of India".
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“The basis of political economy is non-interference. The only safe rule is found in the self-adjusting meter of demand and supply. Do not legislate. Meddle, and you snap the sinews with your sumptuary laws.”
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