'True measure of success will be no of industries that become operational'

Uttar Pradesh Chief Minister Yogi Adityanath outlines the roadmap to a $1 trillion economy, driven by infrastructure, manufacturing, MSMEs, exports and investment-led growth

Uttar Pradesh (UP), India’s most populous state, is seeking to join the ranks of trillion-dollar economies by 2030. The government believes reforms, modern infrastructure, stronger law and order, and an investment-friendly policy framework will drive that transition. Chief Minister Yogi Adityanath, in an email interview with Virendra Singh Rawat, outlines the state’s strategy to lift investments, create jobs, expand infrastructure, strengthen agriculture and exports, and sustain broad based economic growth. Edited excerpts: 

UP’s gross state domestic product (GSDP) is projected at ₹39.8 trillion in 2026-27 (FY27), with the state targeting a $1 trillion economy by 2030. What has driven this transformation? 

Nine years ago, UP was better known for weak law and order, inadequate infrastructure, and unrealised potential than for investment and economic growth. Today, it is among India’s three largest state economies, contributing nearly 9.2 per cent to the national economy. This transformation has been driven by decisive leadership, policy stability, transparent governance, and a zero-tolerance policy against crime, corruption, and the mafia.

 

Prime Minister Narendra Modi’s vision of ‘Reform, Perform, and Transform’ has provided a strong foundation for India’s economic resurgence. In UP, we have translated that vision into measurable outcomes by creating a secure, transparent, and investment-friendly ecosystem.

 

What reforms have made UP more attractive to investors? 

Institutional reforms have played a central role. Invest UP serves as the nodal agency guiding investors through every stage of the investment process, while Nivesh Mitra, our single-window clearance system, has simplified approvals that once discouraged entrepreneurs.

 

With Nivesh Mitra 3.0, we have reduced application fields by 25 per cent, document requirements by 15 per cent, and procedural steps by 20 per cent. The platform also offers an artificial intelligence (AI)-powered chatbot and real-time SMS alerts. Alongside deregulation, the removal of outdated compliances and rationalisation of licensing requirements, these reforms have made UP one of India’s easiest states to do business in.

 

Which sectors are leading the state’s growth? 

Growth has been broad-based across manufacturing, micro, small, and medium enterprises (MSMEs), electronics, semiconductors, data centres, information technology (IT) and IT-enabled services, defence manufacturing, logistics, renewable energy, tourism, agriculture, and food processing.

 

Five sectors stand out: electronics and IT manufacturing around the Jewar airport region; agriculture and food processing, building on UP’s position as India’s food basket; tourism and hospitality, supported by improved connectivity and religious circuits; automotive and electric vehicle; and defence and aerospace, led by the UP Defence Industrial Corridor.

 

World-class infrastructure, including expressways, airports, industrial corridors, and digital connectivity, has fundamentally reshaped the state’s economic landscape.

 

What role does agriculture play in achieving the $1 trillion target? 

Agriculture remains one of UP’s greatest strengths. Although the state has only about 11 per cent of India’s cultivated land, it produces nearly 21 per cent of the country’s foodgrain, making it India’s food basket.

 

Our strategy is to ensure that agriculture, industry and services grow together, creating a resilient and diversified economy. Our objective is not simply to achieve a $1 trillion economy but to make UP the principal growth engine of a Viksit Bharat.

 

How will the Noida International Airport and the Purvanchal, Ganga, and Bundelkhand expressways reshape the state’s economy? 

Infrastructure has become the defining driver of UP’s economic transformation. Under Prime Minister Narendra Modi’s leadership, India has seen unprecedented infrastructure expansion. UP has built on that vision by creating integrated economic corridors linking production centres with markets, industries with logistics, and people with opportunities.

 

The Noida International Airport at Jewar, being developed at an estimated cost of ₹29,600 crore with a planned capacity of 120 million passengers annually, will be one of India’s largest aviation and logistics hubs. Together with the Purvanchal, Bundelkhand, and Ganga expressways, the dedicated freight corridor and upcoming industrial townships, it is creating a seamless ecosystem for manufacturing, exports, logistics, and tourism.

 

How are these projects benefiting farmers and less-developed regions? 

The expressways are transforming market access. Perishable produce and foodgrain from previously remote districts can now reach mandis, processing units, and major consumption centres much faster, reducing wastage and improving farmers’ returns. Construction has also generated hundreds of thousands of direct and indirect jobs.

 

Regions once considered backward are attracting industrial parks, logistics hubs, warehousing, food processing units, and manufacturing investments. The Bundelkhand Industrial Development Authority (Bida), built around the Bundelkhand Expressway and the UP Defence Industrial Corridor, is a prime example of how connectivity is being used to drive industrialisation.

 

Industrial corridors along the Purvanchal and Ganga expressways are also ensuring that improved connectivity translates into investment, while giving farmers, MSMEs, and exporters quicker access to domestic and global markets.

 

How is the government measuring the success of these infrastructure projects? 

We assess these projects through measurable outcomes, including grounded investments, industrial land allotments, employment generation, cargo movement, logistics efficiency, freight traffic, export growth, goods and services tax (GST) collections, and district-level economic activity.

 

Our objective is not merely to build infrastructure but to ensure that every kilometre of connectivity creates new opportunities for enterprise, investment and employment.

 

UP has the highest number of MSMEs in India. How is the government helping them become part of global supply chains? 

With 9.6 million registered units, MSMEs are the backbone of UP’s economy. Through the Export Promotion Policy 2025–30, we are supporting technology upgrade, quality certification, product standardisation, branding, marketing assistance, export facilitation, and participation in international trade fairs. We are also strengthening common facility centres, testing infrastructure, and digital platforms to help enterprises compete globally.

 

What role are One District One Product (Odop) and One District One Cuisine (Odoc) playing in exports and employment?

The Odop programme has given traditional industries a stronger identity by connecting artisans, weavers, craftsmen, and small manufacturers with national and international markets while preserving traditional skills.

 

Building on its success, we launched the Odoc scheme, promoting each district’s signature dish with support for quality standards, food safety, branding, Geographical Indication tag, and ecommerce.

 

What additional support is being provided to MSMEs? 

We continue to reinforce the MSME ecosystem through easier collateral-free credit, skill and toolkit support for artisans, cluster-based common facility centres, and platforms connecting entrepreneurs with domestic and overseas buyers.

 

Our focus is to integrate MSMEs into global value chains through better logistics, digital commerce, skill development, easier access to finance, and modern industrial infrastructure. We want every district of UP to emerge as an export hub and every entrepreneur to become a partner in India’s growth story.

 

Are there plans to ensure that foreign direct investment (FDI) and large-scale manufacturing extend beyond the National Capital Region (NCR) to regions such as Purvanchal and Bundelkhand? 

Balanced regional development is central to our economic strategy. Growth should not remain concentrated in a few urban centres. Every region of UP must become a partner in the state’s development.

 

While NCR continues to attract big investment, we have consciously expanded industrial development to Purvanchal, Bundelkhand, and central UP through expressway-led industrialisation, logistics parks, manufacturing clusters, and sector-specific industrial hubs.

 

How are these regions being developed into manufacturing hubs? 

The UP Defence Industrial Corridor, anchored by key nodes in Jhansi and Chitrakoot, is creating opportunities in a region once associated with drought and migration. The Purvanchal Expressway has also become a catalyst for industrial investment, logistics, and employment across eastern UP.

 

Major public investments have reinforced this transformation. Gorakhpur Fertilizers has revived industrial activity while supporting farmers with domestic urea supply. All India Institute of Medical Sciences Gorakhpur has strengthened healthcare infrastructure and created skilled employment.

 

Through the UP Expressways Industrial Development Authority, integrated manufacturing and logistics clusters are being developed at Ayodhya, Prayagraj, Varanasi, and Gorakhpur. These industrial parks and flatted factory complexes will provide ready-built manufacturing space for MSMEs across eastern Uttar Pradesh.

 

In Bundelkhand, the Bida is developing a planned manufacturing and export hub with industrial, residential and logistics infrastructure. Improved connectivity, readily available industrial land, region-specific incentives, and transparent policies are encouraging industries to expand beyond NCR.

 

What is the broader objective of this regional strategy? 

No young person should have to leave his or her home district in search of opportunities. We want industries to move closer to people so that prosperity reaches every district, every enterprise, and every family.

 

UP has signed investment proposals worth nearly ₹50 trillion. How much has translated into projects on the ground? 

Investor confidence reflects sustained reforms, political stability, transparent governance, and a secure business environment. Over the past nine years, UP has received private investment proposals exceeding ₹50 trillion, with the potential to generate more than 11 million jobs.

 

We have introduced more than 36 sector-specific policies, strengthened the single-window system through Nivesh Mitra 3.0 and the Nivesh Sarathi portal, carried out extensive deregulation, and removed nearly 99 per cent of minor criminal provisions across 13 state laws to improve the ease of doing business.

 

How is the government ensuring that investment proposals are implemented? 

For the first time, UP has introduced a dedicated policy to attract FDI as well as Fortune Global 500 and Fortune India 500 companies through a customised incentive framework.

 

We have established a robust monitoring mechanism to ensure that investment proposals translate into operational projects. Four groundbreaking ceremonies (GBCs) have already resulted in projects worth more than ₹15 trillion reaching implementation, creating over 6 million employment opportunities. Preparations are under way for GBC 5.0, under which projects worth nearly ₹7.5 trillion are proposed to be grounded.

 

Which sectors are attracting fresh investment? 

Investor interest continues to grow. At the World Economic Forum 2026, UP signed investment agreements worth ₹2.94 trillion in AI, data centres, food processing, renewable energy, and defence manufacturing. The Pharma Conclave 1.0 attracted proposals worth ₹10,000 crore, while the UP Global Growth Dialogue in Bengaluru secured commitments of nearly ₹50,000 crore.

 

The electronics manufacturing policy has also exceeded expectations. The investment target of ₹20,000 crore, originally set for five years, was achieved within just three years, reinforcing UP’s position as a preferred destination for advanced manufacturing.

 

How do you measure the success of the state’s investment strategy? 

The true measure of success is not the number of memoranda of understanding signed. It is the number of industries that become operational, the number of young people who secure meaningful employment, and the number of families that no longer need to migrate in search of livelihoods. Our aim is to make every region of UP a centre of investment, enterprise, and opportunity.

 

Your government has consistently supported sugarcane farmers. What is the strategy for diversifying agriculture?

Agriculture remains the foundation of UP’s economy, but rural prosperity depends on diversification and value addition. Alongside record and timely sugarcane payments, we are transforming sugar mills into integrated centres of value creation through ethanol production, cogeneration, and allied activities.

 

We are also promoting horticulture, dairy, fisheries, animal husbandry, food processing, natural farming, and FPOs to create multiple income streams for farmers.

 

How is dairy development contributing to rural incomes? 

The Nand Baba Dugdh Mission is strengthening dairy as a source of rural income. Through schemes such as the Mukhyamantri Swadeshi Gau Samvardhan Yojana (Chief Minister’s Indigenous Cow Conservation Scheme), Nandini Krishak Samriddhi Yojana, and Mini Nandini Krishak Samriddhi Yojana, farmers receive financial assistance for dairy units, with priority given to women and Scheduled Tribe/Scheduled Caste beneficiaries.

 

Village-level dairy cooperatives ensure reliable prices for milk producers, supporting our goal of helping UP reclaim its position as India’s leading milk-producing state.

 

What role do fisheries and horticulture play in this diversification? 

Through the Mukhyamantri Matsya Sampada Yojana, aligned with the Centre’s Pradhan Mantri Matsya Sampada Yojana, we are expanding fish seed banks, promoting fish farming in gram sabha ponds, and providing grants to pond leaseholders.

 

In horticulture, we are expanding cultivation of fruit, vegetables, and flowers, strengthening nurseries and planting material, and investing in cold-chain and post-harvest infrastructure. We are also improving irrigation, promoting mechanisation, ensuring access to quality seeds and encouraging food processing so farmers receive greater value for their produce.

 

What is the long-term vision for rural prosperity? 

By strengthening market linkages and modern supply chains, we want farmers to participate across the agricultural value chain rather than remain producers of raw commodities alone.

 

Our objective is to build a resilient rural economy where higher productivity, value addition, agro-based industries, and rural entrepreneurship together deliver sustainable growth in farmers’ incomes.

 

What are the government’s plans for encouraging defence production in UP? 

The UP Defence Industrial Corridor is one of the country’s most ambitious initiatives to strengthen indigenous defence manufacturing. Guided by Modi’s vision of Aatmanirbhar Bharat, we are building a comprehensive ecosystem that will position UP among India’s leading defence manufacturing destinations.

 

Which sectors and industries will drive this ecosystem? 

The six-node corridor is attracting investments in aerospace, drones, ammunition, defence electronics, armoured systems, precision engineering, and advanced manufacturing. Major anchor investments, including BrahMos Aerospace in Lucknow, Adani Defence & Aerospace in Kanpur, and Bharat Dynamics in Jhansi, are helping create a robust industrial base.

 

Our policy framework combines modern infrastructure, transparent governance, competitive incentives, skilled manpower, and strong connectivity to support both domestic and global manufacturers.

 

How will this benefit local industry and employment? 

A key priority is integrating MSMEs, startups, research institutions, and large industries into a common ecosystem. This will fortify India’s defence supply chain while creating high-quality employment opportunities.

 

UP’s tax-to-GSDP ratio is now above the national average. How has the state strengthened its finances?

Strong public finances are the outcome of disciplined governance and sustained economic growth. Over the past nine years, we have bolstered revenue administration through digitisation, technology-driven governance, improved GST compliance, greater transparency, simplified systems, and measures to curb leakages. Better law and order, policy stability, and expanding economic activity have naturally widened the state’s revenue base.

 

How has fiscal discipline supported development? 

We have prioritised productive expenditure over unproductive spending, directing resources towards infrastructure, industrial development, healthcare, and education. We have also adopted priority-based fund allocation so projects nearing completion receive timely support, reducing delays and cost overruns.

 

Guided by the principles of transparency, technology, and accountability, UP has improved revenue mobilisation while maintaining one of the highest levels of capital expenditure (capex) among Indian states. Fiscal discipline is not about limiting development; it is about ensuring every public rupee creates long-term economic value.

 

UP has budgeted capex of more than ₹1.77 trillion for FY27. How will this target be achieved? 

Capex is an investment in the state’s future. Every rupee spent on productive public assets reinforces economic growth, attracts private investment, and generates employment.

 

The ₹1.77 trillion capital outlay will fund expressways, airports, industrial corridors, logistics infrastructure, irrigation projects, urban development, drinking water supply, healthcare, education, digital infrastructure, and industrial parks.

 

What is the strategy for financing and executing these projects? 

The target will be achieved through prudent fiscal management, improved revenue mobilisation, support from the Government of India, institutional financing where appropriate, and rigorous project monitoring. Every project is reviewed regularly to ensure timely completion, quality implementation, and optimum use of public resources.

 

Our guiding principle is simple: public investment must create productive assets that strengthen the economy for decades while supporting UP’s journey towards becoming a $1 trillion economy.

 

The 16th Finance Commission highlighted the strain on state finances. What are your plans for the power sector? 

Reliable, affordable, and uninterrupted electricity is indispensable for sustained economic growth. No modern economy can attract investment or generate large-scale employment without a financially sustainable power sector.

 

Over the past nine years, UP has strengthened power generation, transmission, and distribution. We are now preparing the sector for the demands of a rapidly expanding economy through investments in transmission infrastructure, smart metering, grid modernisation, green energy corridors, renewable energy, and battery energy storage systems.

 

What reforms are planned to make the sector financially sustainable? 

Alongside capacity expansion, we are reducing aggregate technical and commercial losses, improving operational efficiency, strengthening the financial health of distribution companies, and enhancing consumer services through technology-driven governance. These reforms will ensure reliable power for households, farmers, businesses, and industries as demand continues to grow.

 

Modi has set an ambitious vision for India’s clean energy transition, and UP is contributing by expanding renewable energy capacity, encouraging private investment and firming up green power infrastructure.

 

Our objective is not only to meet today’s energy needs but also to build a modern, resilient, and future-ready power sector that supports industrial growth, improves citizens’ quality of life, and strengthens UP’s journey towards becoming a $1 trillion economy.