Airports to highways: Tracking the making of Uttar Pradesh's economy

State's ambition to be a $1 trn economy is driven by various industries

Under the leadership of Uttar Pradesh Chief Minister Yogi Adityanath, the state government has taken several steps for infrastructure development, seeking investments and supporting cooperatives and traditional crafts. 

On December 24, participating in the discussion on the Supplementary Budget 2025-26, Adityanath underscored the state’s transformation into a premier investment destination, driven by a paradigm shift towards “fearless business”, “ease of doing business”, and “trust of doing business”. 

Adityanath said Uttar Pradesh has shed its “Bimaru” tag to emerge as a revenue-surplus powerhouse through stringent fiscal discipline and good governance. UP’s Gross State Domestic Product (GSDP) has increased nearly threefold, rising from ₹12.88 trillion (FY16) to an estimated ₹35-36 trillion. Per capita income has surged from ₹43,000 to ₹1,20,000. 

Highlights of the economic and social turnaround include financial Inclusion and the Credit-Deposit (CD) ratio improving from 44 per cent to 62-65 per cent, with a target to reach 70 per cent, ensuring local deposits are reinvested within the state. UP is rapidly becoming a global logistics hub with 22 expressways (set to account for 60 per cent of India’s total expressway network) and the highest number of airports (16 operational, including 4 international), he said. 

Investments for employment 

The Chief Minister said that investments have created direct jobs for more than 6 million people. He credited the micro, small and medium enterprises sector for supporting nearly 20 million families. Agriculture growth rate has leapt from 8 per cent to 18 per cent.  

The government’s commitment to welfare schemes is inclusive and “faceless”, providing housing, rations and Ayushman cards without discrimination, he said. The health care infrastructure is being bolstered with the establishment of 81 medical colleges. The CM said the state’s zero-tolerance policy towards crime has established a secure environment where “no goon can threaten a trader or collect goonda tax”. This security, coupled with over 30 sectoral policies, has made UP a “dream destination” for global investors.  

The Supplementary Budget of ₹24,498.98 crore aims to further catalyse these developments in technology, health, and women’s empowerment, bringing the total budget for FY26 to over ₹8.33 trillion. 

On December 23, the state government approved the establishment of two Centres of Excellence for green hydrogen to promote research, technological development, human resource capacity building and industrial application.  

On December 17, the state government announced introducing a dedicated Marketing Development Assistance scheme for service exporters under the Uttar Pradesh Export Promotion Policy 2025–30. In recent years, Uttar Pradesh’s service sector has recorded strong growth in exports and currently contributes nearly 45 per cent to the state’s GSDP. 

On December 16, the Chief Minister met Tata Sons Chairman N Chandrasekaran who proposed to develop a World-Class Tata-AI global capability centre in the state, according to a government statement. In addition, consensus was reached on the expansion of Tata Consultancy Services units in Lucknow, Noida and Varanasi. The meeting included detailed deliberations on the Uttar Pradesh Defence Industrial Corridor. The Tata Group proposed increased investments in the manufacturing of drones, missiles and defence vehicles across various defence industrial nodes in the state, including Jhansi. 

The Uttar Pradesh government said earlier this month that the Noida International Airport at Jewar will be inaugurated in January 2026. “Today, 16 airports are functional. Out of these, four are international airports and the fifth international airport, which will be India's largest, will be made operational in Jewar. This is the speed of Uttar Pradesh," Adityanath said in the UP Vidhan Sabha. 

Recently, Sify Technologies Chairman and Managing Director Raju Vegesna met the UP CM, and discussed AI-led digital transformation and development of the proposed 'AI Cities' in Lucknow and Noida. Vegesna said Sify has invested more than ₹12,000 crore in UP in the last five years. 

On December 5, Adityanath reviewed efforts to accelerate foreign investment inflows, stressing that “speed, stability and support” should define the new Uttar Pradesh, according to an official statement. Officials informed the Chief Minister that the state received $683 million in foreign investment between April and September of 2025-26, taking the cumulative foreign direct investment since October 2019 to $2,754 million. The state has recorded an inflow of ₹5,963 crore in FY26 so far. 

On December 2, the Uttar Pradesh Cabinet approved the expansion of the proposed temple museum in Ayodhya, contracting Tata Sons for the project.  

Tourism boom in Ayodhya 

Ayodhya has seen a massive increase in footfall since the Pran Pratishtha at the Shri Ram Janmabhoomi Temple earlier this year. Ayodhya is expected to receive up to 500 million visitors by the end of 2025, the Uttar Pradesh government has said. 

On November 15, Defence Minister Rajnath Singh and Adityanath flagged off the first batch of BrahMos missiles manufactured at the BrahMos Aerospace unit. The manufacturer of the BrahMos supersonic missile system has produced the first batch of missiles at its new integration and test facility in Lucknow. 

The ₹300-crore unit, located in the state capital’s Bhatgaon in Sarojini Nagar, is one of the most ambitious projects of the Uttar Pradesh Defence Corridor. The government provided 80 hectares for the factory. Adityanath said on November 17 that during Operation Sindoor, drones developed by the youth of Uttar Pradesh stunned Pakistan.