UP sees economic gains with surge in revenue, exports and incomes since 2017

NEW DELHI: Key economic indicators of Uttar Pradesh point to a gradual strengthening of the state’s fiscal position, export capacity and income levels over the past decade, marking a shift from the prolonged stagnation seen in earlier years.

Data on tax composition, budget expansion, per capita income and output growth suggests that the state’s economy has recorded steady movement across multiple parameters since 2017.


One of the more significant changes has been in the structure of tax revenues. Up to the financial year 2016-17, central taxes accounted for 56 percent of Uttar Pradesh’s total tax revenue, indicating a high degree of dependence on transfers from the Centre.

By the financial year 2025-26 (Budget Estimates), this share had declined to 46.4 percent. During the same period, the share of state taxes rose to 53.6 percent, reflecting an increase in the state’s own revenue mobilisation.

Export growth accelerates

For over two decades, Uttar Pradesh’s export performance remained subdued. Exports rose from around Rs 8,000 crore in 1992-93 to Rs 84,000 crore by 2016-17, indicating slow and uneven growth. The trend changed after 2017, with exports registering a sharp increase to Rs 1,86,060 crore by 2024-25 under chief minister Yogi Adityanath.

The growth has been linked to improvements in ease of doing business, investments in logistics infrastructure and sector-specific policy support. High-potential sectors such as textiles, electronics, food processing and handicrafts have contributed to the expansion, positioning the state as a more active participant in India’s export economy.

Per capita income recovers

At the time of India’s Independence, Uttar Pradesh’s per capita income was broadly in line with the national average. Over the decades, however, it steadily declined to less than half of the national level, reflecting slower growth relative to other states.

In recent years, per capita income has shown improvement. It increased from Rs 54,564 in 2016-17 to Rs 1,08,572 in 2024-25. As a proportion of the national average, per capita income stood at 52.90 percent in 2024-25. This marks a recovery phase after nearly five decades of relative decline, though the gap with the national average remains significant.

Budget size expands

The size of the Uttar Pradesh budget expanded substantially between 2017-18 and 2025-26, increasing by Rs 4.87 lakh crore over eight years. In contrast, the budget grew by Rs 2.28 lakh crore during the preceding eight-year period from 2008-09 to 2016-17.

There has also been a shift in spending priorities. Budgets before 2017-18 were largely concentrated on organisational expenditure, agriculture and basic services. Subsequent budgets have placed greater emphasis on outcome-based budgeting, digital transparency, expressways, logistics, women’s safety, agricultural innovation and development-focused investment.

GSDP records 2-fold growth

Uttar Pradesh’s Gross State Domestic Product (GSDP) increased from Rs 13.3 lakh crore in 2016-17 to Rs 29.8 lakh crore in 2024-25, representing a 2.2-fold increase in under a decade.

This growth has been supported by higher capital expenditure, expansion of expressways and metro networks, growth in MSMEs, increased private investment, improvements in logistics and power availability, and governance reforms. The data also indicates gradual economic diversification, with manufacturing, services, tourism and the digital economy contributing a larger share to output.

Tax performance & debt indicators

The state’s share in the combined own-tax revenue of all states stood at 9.9 percent in 2022-23, 10.5 percent in 2023-24 and 11.6 percent in 2024-25, making Uttar Pradesh the second-highest contributor nationally by this measure.

Interest expenditure as a percentage of revenue receipts for all states averaged 12.6 percent, 12.3 percent and 12.1 percent during these years. Uttar Pradesh’s corresponding figures were lower at 10.3 percent, 9.4 percent and 8.9 percent.

The state’s own-tax revenue as a percentage of GSDP also exceeded the all-state average. While the national average stood at 6.5 percent, 7.0 percent and 7.2 percent, Uttar Pradesh recorded ratios of 7.6 percent, 9.8 percent and 10 percent.

DBT coverage expansion

Direct Benefit Transfer (DBT) has expanded significantly across the state. Funds are currently being disbursed through 207 schemes across 11 departments, including 113 central schemes and 94 state-sector schemes.

In 2024-25, over 9 crore 08 lakh beneficiaries received Rs 1,11,637 crore through DBT. Estimated savings from reduced leakages due to DBT-linked transactions stand at Rs 10,000 crore.

Digital transactions have also increased sharply, rising from 122.84 crore in 2017-18 to 1,380.91 crore by March 2025.

NITI Aayog flags fiscal improvement

In its assessment of states’ fiscal conditions, NITI Aayog placed Uttar Pradesh in the “front-runner” category. Between 2018-19 and 2022-23, the state’s consolidated Fiscal Health Index improved by 8.9 points.

Capital expenditure accounted for between 14.8 percent and 19.3 percent of total expenditure during this period, higher than the average among major states. The assessment also recorded a decline in debt levels as a percentage of GSDP, supported by revenue and primary surpluses.