UP’s tale of transformation: From a BIMARU state to one with $ 1 trillion economy target
As the Yogi govt is set to complete 8 years in office, Uttar Pradesh’s GSDP has more than doubled from ₹12.75 lakh crore in 2016-2017 and is expected to reach ₹27.50 lakh crore this year
When Yogi Adityanath took over the reins in 2017, Uttar Pradesh was tagged a ‘BIMARU’ state. Eight years down the line, the state aims to become a trillion-dollar economy by 2029—the deadline set by the CM to achieve the goal. ‘BIMARU’ is an acronym earlier used for Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh to define their economic backwardness.
Also at a time when the states like Gujarat were being viewed as a model for governance, Uttar Pradesh has carved out a niche for itself with its own governance model and the Yogi government’s policies like the ‘One District One Product’ are being replicated around the country.
A final picture of the economic impact of Prayagraj Mahakumbh 2025 though will emerge once the data is out, the grand turnout at the event may apparently help in strengthening the state’s position as a destination for the tourists and thus bring about economic progress.
There are already claims that the event generated a revenue of ₹2 lakh crore or more and the statistics of U.P.’s revenue collection in 2024-2025 and its impact on the GSDP would be watched with keen interest.
Uttar Pradesh’s GSDP has more than doubled in the past 8 years from ₹12.75 lakh crore in 2016-2017 and is expected to reach ₹27.50 lakh crore on March 31, 2025. The state government has projected a growth rate of 11.85 percent to take the GSDP to the level of ₹30.77 lakh crore in 2025-2026.
Uttar Pradesh began striving to become a trillion-dollar economy soon after Prime Minister Narendra Modi first floated the idea while speaking at the UP Investors Summit-2018, the first such major effort of Yogi government to attract investment in the state.
“Can Maharashtra and Uttar Pradesh compete to become the trillion-dollar economy? Will UP government compete with other states? More the competition, more will be the investment. This will result in the creation of more jobs and strengthen the concept of cooperative federalism,” said Modi at the UP Investors Summit on February 21, 2018.
Yogi and his team were seen giving a shape to the idea with the CM convening meetings one after the other to discuss the issue. By 2019, he and his ministers were seen taking lessons in governance and leadership to make the state a trillion-dollar economy.
The process of appointing a consultant to achieve the objective began. His government boasts of smoothly navigating the crisis that struck on the financial front following the Covid-19 lockdowns.
As the Uttar Pradesh Investors Summit 2018 attracted investment proposals of ₹4.28 lakh crore to the state, three groundbreaking ceremonies to implement the investment were held. The first groundbreaking ceremony was held on July 29, 2018 to implement investment of ₹61,847 crore.
The second groundbreaking ceremony held on July 28, 2019, paved way for implementation of investment of ₹65,000 crore. The third was held on June 3, 2022, to implement projects worth ₹80,000 crore. The state government claims to have implemented about 50 percent of the investment intents received at UP Investors Summit-2018.
Uttar Pradesh Global Investors Summit-2023 was a bigger move organised from February 10 to 12 , 2023 and attracted investment proposals of ₹33.50 lakh crore. The state government organised the fourth groundbreaking ceremony from February 19 to 21, 2024 to implement projects worth ₹10.11 lakh crore.
Out of these proposals, the projects worth ₹6.5 lakh crore have either started commercial production or are under implementation. The state government claims to have attracted investment proposals of ₹45 lakh crore and out of them the proposals exceeding ₹15 lakh crore have been implemented.
Uttar Pradesh’s CD ratio has gone up considerably in the past 8 years. The state government claims that the CD ratio has gone up from 46 percent in 2017 to 60.7 percent in 2024. Chief minister Yogi Adityanath recently asked his team to make efforts to take the state’s credit deposit (CD) ratio to 67-70 percent in 2025-2026.
In a first-of-its-kind move, the state government has decided to evaluate the performance of top civil servants posted in districts and divisions on the basis their ability to attract investment, create jobs and disbursal of loans against the deposits made in the banks in various districts/divisions.
It has been decided that the ability of district magistrates and divisional commissioners to attract investment and increase the CD ratio will factor in their Annual Performance Appraisal Report (APAR) in the coming years.
A government order dated October 24, 2024, was issued in this regard. This is the first time that any state government in the country has changed the performance evaluation metrics for the government officers.
As the financial year ends on March 31, the efforts made by the officers will be known and reflected in their annual appraisals. The state government has also claimed that the per capita income in the state has gone up from ₹52,671 in 2016-2017 to ₹93,514 in 2023-2024.
Yogi has given a strong message that the state government would not tolerate corruption and not make any compromises in providing an industry-friendly environment to the investors intending to make investment in the state.
So, when a complaint was filed against Invest UP CEO Abhishek Prakash indicating alleged involvement of a middlemen to collect commission in lieu of giving certain clearances, the CM ordered action. An FIR has been filed to probe the allegations and a disciplinary inquiry has been ordered against Abhishek Prakash. He also faces a vigilance probe.
