LUCKNOW: Uttar Pradesh Chief Minister Yogi Adityanath’s remarkable economic management over the past eight years has left the entire nation astounded. When Yogi Adityanath assumed office in 2017, Uttar Pradesh’s economy stood at Rs 12.88 lakh crore. Without introducing any new taxes, he has successfully grown it to Rs 27.51 lakh crore. The government is now actively pursuing the ambitious goal of crossing the Rs 30 lakh crore mark within the ongoing financial year.
CM Yogi has consistently highlighted the rampant corruption and loot that plagued previous governments, where public funds were often siphoned off by a select few. In stark contrast, his administration’s good governance and transparent policies have not only rectified the financial health of the state but have also elevated Uttar Pradesh to unprecedented heights of economic prosperity.
One of Yogi Adityanath’s most significant achievements has been steering Uttar Pradesh away from its BIMARU (laggard) state tag. In the past five years, Uttar Pradesh has become a key contributor to India’s economic growth. Although it holds the title of the country’s most populous state, its Gross State Domestic Product (GSDP) remained at just Rs 12.75 lakh crore between 1950 and 2017. Under Chief Minister Yogi Adityanath’s leadership, however, the state’s economy has surged, more than doubling to Rs 27.51 lakh crore. The government aims to elevate it further to Rs 30.77 lakh crore in the current fiscal.
The transformation is particularly noteworthy as Uttar Pradesh’s contribution to India’s GDP now stands at a significant 9.2 per cent, making it the second-largest economy in the country. In 2023-24, while India’s overall GDP expanded at a rate of 9.6 percent, Uttar Pradesh surpassed it by recording an impressive growth rate of 11.6 per cent.
Prior to 2017, the Uttar Pradesh government often faced difficulties in disbursing timely salaries to its employees. Numerous development projects were stalled due to chronic budgetary shortages. However, today, without burdening citizens with any additional taxes, Uttar Pradesh has become a revenue surplus state for the last five consecutive years. This turnaround was achieved by tightening tax collection processes, eliminating revenue leakages, and embracing large-scale digital reforms that enhanced transparency.
Despite maintaining the lowest petrol and diesel prices in the country, UP’s economy has continued its upward climb, reflecting sound fiscal management.
Embracing Prime Minister Narendra Modi’s “Digital India” vision, Chief Minister Yogi Adityanath made digital governance a top priority. Uttar Pradesh has emerged as a leading example of the digital revolution. By December 2024, Uttar Pradesh had completed more than one billion digital transactions in the 2024–25 financial year, with UPI accounting for the majority of them.
Efforts to expand internet connectivity to villages, enhance digital literacy, and increase device availability have been key enablers. Furthermore, by transferring benefits directly to citizens’ bank accounts via Direct Benefit Transfer (DBT), the government eliminated the role of intermediaries, curbing corruption significantly. At present, financial assistance under 207 schemes spanning 11 departments including 113 schemes run by the central government is being distributed via Direct Benefit Transfer (DBT). In the financial year 2024-25 alone, over Rs 1 lakh crore has been directly transferred to the accounts of more than 9 crore beneficiaries, resulting in government savings of nearly Rs 10,000 crore.
The Reserve Bank of India (RBI) has praised Uttar Pradesh’s fiscal discipline. According to its 2024-25 report on state budgets, UP’s share of self-generated tax revenues stood at 9.9 per cent, 10.5 percent, and 11.6 per cent over the last three years – ranking it the second-best performer among Indian states. While the average owe-tax-to-GDP ratio for all states hovered around 6.5 to 7.2 percent, Uttar Pradesh consistently achieved higher ratios at 7.6, 9.8, and 10 per cent, reflecting its superior tax mobilisation efforts.
After tirelessly working for the first three years of his tenure to build a robust economic foundation, Chief Minister Yogi Adityanath has made Uttar Pradesh a top choice for investors. Cracking down on organised crime and mafia activities – once rampant and a major deterrent for businesses – the Yogi government has restored law and order, creating a safe and welcoming environment for industries.
As a result, industries have flourished, and investments have poured in, making UP a major contributor to the nation’s economic growth. Remarkably, religious tourism once dismissed by critics has now emerged as a major driver of Uttar Pradesh’s economy. Cities like Ayodhya, Kashi, and Mathura are experiencing a surge in tourist activity, significantly strengthening their local economies. The grand success of events like the Mahakumbh and the international recognition of the “UP Model” at the United Nations highlight the scale of this remarkable transformation.
