Will uneven economic growth pose a tough challenge to Uttar Pradesh’s aspirations of becoming a trillion-dollar economy? Currently, Noida alone contributes over 10% of the state’s economy while many districts in eastern UP and Bundelkhand are still stuck at less than 1% each.
Just five districts — Gautam Buddha Nagar, Ghaziabad, Lucknow, Kanpur Nagar, and Prayagraj — account for over 30% of the state’s GSDP that has grown to ₹25.63 lakh crore in 2023-24, according to the latest District Domestic Product (DDP) 2023-24 report.
Finance minister Suresh Khanna referred to the report in the Vidhan Parishad recently to mark the staggering growth in the UP’s Gross State Domestic Product (GSDP) since 2017.
In contrast, many districts in eastern UP and some in Bundelkhand contribute less than 1% each, exposing deep regional disparities.
The state’s per capita income rose to ₹1,26,059 in 2023-24.
The services sector not only remained the largest contributor (46.9%) but also the fastest growing, registering 10.2% growth. The sector was powered by trade, hotels, transport, real estate, IT, and public administration.
The industrial sector (26% share) grew by 7.6%, aided by manufacturing clusters, MSMEs, and strong construction activity linked to expressways and housing. The primary sector (agriculture and allied activities), still accounting for 25.8% of GSDP, expanded by a more modest 6.8%, reflecting fluctuations in crop output but steady gains from livestock and allied activities.
{{/usCountry}}The industrial sector (26% share) grew by 7.6%, aided by manufacturing clusters, MSMEs, and strong construction activity linked to expressways and housing. The primary sector (agriculture and allied activities), still accounting for 25.8% of GSDP, expanded by a more modest 6.8%, reflecting fluctuations in crop output but steady gains from livestock and allied activities.
{{/usCountry}}While western UP continues to dominate the state’s economy, the Bundelkhand region presents a more complex picture than its backward image suggests. Collectively, Bundelkhand’s seven districts contribute about 7.1% of UP’s GSDP — higher than expected. Jhansi’s per capita income, at over ₹1.5 lakh, exceeds the state average, driven by trade, services, and growing industry, while Lalitpur and Jalaun also perform relatively better. However, parts of Mahoba and Chitrakoot remain below ₹80,000, showing the region’s internal contrasts.
Significantly, Bundelkhand fares better in per capita terms than many districts in eastern UP, where poverty and low incomes remain widespread.
Experts feel this uneven spread of prosperity poses a significant challenge to the Yogi Adityanath government’s ambition of making Uttar Pradesh a $1 trillion economy .
“Growth required to chase the $1 trillion economy dream cannot be accelerated unless it is geographically widespread. It requires huge investment in lagging districts,” noted economist Ajeet Kumar Singh said.
He stressed that such a milestone requires broad-based growth across districts, especially in Purvanchal and Bundelkhand, which continue to trail in industrialization, infrastructure, and job creation. He said the growth in the manufacturing sector was slugging and warranted attention.
Many warn that unchecked disparities could continue to widen income inequality, fuel migration pressures, and strain already congested urban centres like Noida and Lucknow.
“The expressways, industrial corridors, MSME promotion, and renewable energy projects are designed to bridge the divide, but the DDP numbers make clear that western UP still races far ahead and much more needs to be done to narrow down wide regional disparities,” a senior bureaucrat pointed out.
“Noida, Ghaziabad, and Lucknow may be booming, but together they make up only a slice of UP. To reach $1 trillion, growth has to come from all regions, not just a few urban hubs,” the official added.
Suggestions sought
for balanced growth
Acting chief secretary Deepak Kumar, who also heads the finance department, acknowledged regional economic disparities as a major challenge.
“The government’s Vision Document, recently discussed in the UP Assembly, addresses the issue of uneven growth across regions. We are inviting suggestions from experts, intellectuals, and public representatives on ways to achieve balanced growth,” he said.
He added that the Vision Document is built around three broad themes divided into 12 sectors.
“Alongside this, the government is also taking measures such as extending higher subsidies in less developed districts, implementing special projects, establishing more educational and healthcare institutions, and filling staff vacancies there on priority,” Kumar said.