By Mr. Abhay Ray 
Introduction
Uttar Pradesh (UP), once struggling with financial difficulties and budget deficits, has witnessed an impressive turnaround under the leadership of Chief Minister Yogi Adityanath. In a period of just eight years, the state’s economy has more than doubled, growing from ₹12.88 lakh crore in 2017 to ₹27.51 lakh crore. Yogi’s government is now aiming to further this progress, targeting an economy worth over ₹30 lakh crore in the 2025-26 financial year.
GSDP Growth: A Remarkable Economic Turnaround
One of UP’s most significant achievements has been shedding its “BIMARU state” image. Through relentless efforts, the Chief Minister has positioned UP as the “growth engine” of India over the past five years.
Officials here on Monday noted that although UP has always been India’s most populous state, its GSDP had only reached ₹12.75 lakh crore from 1950 to 2017. Since then, the GSDP has more than doubled to ₹27.51 lakh crore, with a target of ₹30.77 lakh crore set for the current financial year. Once mocked, Uttar Pradesh today stands tall as India’s second-largest economy, contributing 9.2 per cent to the national GDP. In 2023–24, while India’s GDP grew at 9.6 percent, UP outpaced it with an impressive growth rate of 11.6 percent.
It is worth recalling the situation before 2017, when UP struggled to pay salaries on time and development projects stalled due to chronic budgetary shortfalls. Thanks to prudent fiscal management and structural reforms under Chief Minister Yogi Adityanath, Uttar Pradesh has become a revenue-surplus state for five consecutive years all without burdening citizens with additional taxes. The government tackled tax evasion, plugged revenue leakages, and embraced large-scale digital governance to enhance transparency. Despite having the country’s lowest diesel and petrol rates, Uttar Pradesh has continued its remarkable journey toward economic prosperity, proving that sustainable development is achievable through honest leadership and strategic planning.
Yogi Govt Saves ₹10,000 Crore with DBT
Chief Minister Yogi Adityanath has placed Prime Minister Narendra Modi’s vision of Digital India at the core of his governance priorities. As a result, Uttar Pradesh today stands as a shining example of India’s digital revolution. By December 2024, during the 2024–25 financial year, the state recorded over 1,000 crore digital transactions more than half conducted through UPI. This remarkable achievement has been made possible through widespread internet accessibility in villages, increased digital awareness, and the availability of internet-enabled devices across the state. Moreover, the government’s direct transfer of funds into the bank accounts of scheme beneficiaries has dismantled the web of middlemen, significantly curbing corruption. Currently, funds for 207 schemes across 11 departments including 113 schemes of the Central Government are being disbursed via Direct Benefit Transfer (DBT).
In 2024–25 alone, over ₹1 lakh crore has been transferred to more than 9 crore beneficiaries, saving the government approximately ₹10,000 crore through DBT efficiencies.
According to the RBI’s 2024–25 state budget report, UP’s share in the own tax receipts of all Indian states was 9.9%, 10.5%, and 11.6% for the years 2022–23, 2023–24, and 2024–25 respectively ranking it as the second-best performing state. In these years, while the average own tax-to-GSDP ratio for other states stood at 6.5%, 7.0%, and 7.2%, UP posted higher ratios of 7.6%, 9.8%, and 10%, respectively.
Religious Tourism Gains Traction in UP
Religious tourism has also been a major contributor to UP’s economic growth. Pilgrimage centers like Ayodhya, Kashi, and Mathura have attracted global tourists, leading to a boom in religious tourism. The successful organisation of events like the Mahakumbh has further boosted the state’s economy, benefiting local businesses and creating jobs.
This success has not gone unnoticed, with Uttar Pradesh’s model of growth now being discussed on international platforms, including the United Nations. The state has become an example of how effective governance, transparency, and strategic reforms can drive substantial economic growth. With continued progress under the leadership of Yogi Adityanath, Uttar Pradesh is on track to reach its target of a ₹30 lakh crore economy by 2025-26. The state’s remarkable transformation serves as a beacon of hope for other regions, showing that with the right leadership and policies, growth and prosperity are achievable.
Conclusion
Uttar Pradesh’s transformation under Chief Minister Yogi Adityanath stands as a testament to the power of strategic governance and fiscal discipline. From a state once plagued by financial instability to now being India’s second-largest economy, UP has charted an extraordinary growth path. Through efficient fiscal management, aggressive digitalization, and a crackdown on tax evasion, the state has become revenue-surplus without burdening its citizens.The success of Direct Benefit Transfer and rising religious tourism have further fueled inclusive development. With its economy set to surpass ₹30 lakh crore by 2025–26, UP is no longer seen through the lens of its past but as a model of modern, sustainable growth.
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