UP budget countdown begins: Mega $1 trillion economy push in focus

Uttar Pradesh Chief Minister Yogi Adityanath.

• UP budget session starts Feb 9, aiming for one trillion dollar economy target
• Departments urged to expedite projects, enhance monitoring, and use funds wisely.
• Growth drivers: agriculture, energy, industry, healthcare, tourism

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With the Uttar Pradesh Legislature’s budget session scheduled to begin from February 9, the Yogi Adityanath government has stepped up efforts to position the state on a fast track towards achieving its ambitious one trillion dollar economy target.

Fresh directives have been issued to multiple departments, focusing on stricter monitoring, faster project execution and efficient utilisation of budgetary allocations.

Chief Minister Yogi Adityanath said the upcoming state budget will align with the broader economic vision laid out by the Centre. “The recent Union Budget is historic. Our state budget that will be presented on February 11 will be an extension of the Union Budget with an aim to take Uttar Pradesh a step closer to a one trillion dollar economy,” he said.

A senior government official said departments have been asked to strengthen monitoring mechanisms and accelerate implementation of key projects to ensure sustained economic expansion. The state government is planning structured weekly, fortnightly and monthly reviews to track progress and identify bottlenecks at an early stage.

Uttar Pradesh’s Gross State Domestic Product has recorded steady growth over the past decade. The GSDP stood at nearly Rs 12.5 lakh crore in 2016-17 and has risen to around Rs 29.78 lakh crore in 2024-25. The state projects its GSDP to cross Rs 36 lakh crore in 2025-26. Officials said the state’s contribution to the national economy has also improved from about 8 percent in 2016 to more than 9 percent in 2024-25.

Authorities said the next phase of economic expansion would depend on stronger inter-departmental coordination and faster execution of development programmes. Departments have been directed to strengthen real-time data reporting systems and ensure regular updates of progress dashboards. A consolidated inter-departmental review mechanism is also being introduced to support timely policy interventions.

Key drivers

Agriculture, energy and industry have emerged as the key drivers of the state’s economic growth. Uttar Pradesh currently contributes nearly 21 percent to the country’s total foodgrain production. Officials attribute this growth to improved productivity, better seed quality, increased use of modern technology and diversification into high-value crops. The expansion has also supported farm incomes and boosted rural demand.

In the energy sector, the government’s measures to reduce power theft and technical losses have improved the financial health of power utilities. Simultaneously, large-scale solar projects and solar parks under the PM Kusum-C scheme are expanding renewable energy capacity, which is expected to attract higher central allocations and private investment.

The healthcare sector is also witnessing increased investment. Payments to hospitals under the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana are contributing to sectoral revenues, while expansion of hospital infrastructure and bed capacity is encouraging private sector participation in health services.

Industrial activity in the state has strengthened with the addition of nearly 7,000 new factories under the Annual Survey of Industries framework. Rising company registrations and manufacturing expansion are widening the state’s industrial base and enhancing tax collections. The education sector is also contributing to Gross State Value Added, particularly through salary rationalisation in aided institutions.

Tourism remains another major growth area. Uttar Pradesh has recorded a significant rise in tourist footfall in recent years. Departments have been instructed to develop destination-specific tourism plans, expand accommodation capacity through hotels and homestays and improve last-mile connectivity to convert visitor inflows into sustained economic growth.

On the fiscal front, departments have been asked to ensure timely utilisation of funds and maintain close coordination with central agencies to prevent delays in release of central assistance for development projects.

Officials said the government’s focus is now on ensuring convergence across key sectors including agriculture, industry, energy, healthcare and tourism to accelerate overall economic output. The upcoming budget is expected to outline sector-specific strategies aimed at maintaining high growth momentum and advancing Uttar Pradesh towards its one trillion dollar economy goal.