Key Points
- Uttar Pradesh aims to become a $1 trillion economy by 2030, with plans focusing on infrastructure, education, and key sectors like IT and manufacturing.
- Research suggests major projects like new expressways and the Noida International Airport will boost connectivity and economic growth.
- It seems likely that investments in solar energy and data centers will enhance sustainability and technological advancement.
- The evidence leans toward significant budget allocations for education and health, aiming to improve quality of life and workforce skills.
Infrastructure and Economic Growth
Uttar Pradesh is investing heavily in infrastructure to drive economic progress. This includes constructing new expressways like Agra-Lucknow and Bundelkhand-Riwa, and developing a defence corridor to attract investments. The Noida International Airport is a major project expected to relieve pressure on Delhi's airport and boost regional connectivity.
Sectoral Development
The state is focusing on key sectors such as IT & ITES, manufacturing, and religious tourism. Plans include expanding data center parks and promoting manufacturing hubs, which are likely to create jobs and attract investments. Agriculture and rural development are also prioritized to support farmers and boost productivity.
Social and Human Development
Significant budget allocations are made for education, aiming to modernize schools and increase residential school capacities. Health and social welfare programs are enhanced to improve living standards, ensuring a balanced approach to development.
Survey Note: Detailed Analysis of Uttar Pradesh's Development Plans for 2025-2030
Uttar Pradesh, India's most populous state, is embarking on an ambitious journey to transform into a $1 trillion economy by 2030, leveraging its vast resources and strategic location. This survey note provides a comprehensive overview of the state's development plans for the next five years, based on recent budget documents, policy announcements, and project updates as of June 30, 2025. The analysis covers infrastructure, sectoral growth, and social development, aiming to highlight initiatives that will propel the state forward.
Economic Vision and Targets
The state's vision is to achieve a $1 trillion economy, with its current Gross State Domestic Product (GSDP) projected at Rs 30.8 lakh crore ($375 billion) for 2025-26, growing at 12% over the previous year. To reach the target, sustained annual growth of around 24% is needed, a challenging but feasible goal given recent economic trends. The 2025-26 budget, presented on February 20, 2025, with a total outlay of Rs 8,08,736 crore, reflects a 9.8% increase from the previous year, emphasizing infrastructure and sectoral development.
Infrastructure Development: Backbone of Growth
Infrastructure is a cornerstone of Uttar Pradesh's development strategy, with significant investments in connectivity and industrial corridors. Key projects include:
- Expressways and Roads: The state is constructing four new expressways—Agra-Lucknow, Ganga, Vindhya, and Bundelkhand-Riwa—with an allocation of Rs 1,050 crore for 2025-26. These projects, part of a broader Rs 80,000 crore outlay since 2017, aim to enhance connectivity and reduce travel times, such as the Delhi-Dehradun expressway reducing travel to 2.5 hours. The budget also allocates Rs 200 crore for village roads under the Mukhya Mantri Gram Yojana.
- Defence and Industrial Corridors: A defence corridor along the Bundelkhand-Riwa expressway, with Rs 461 crore allocated, is estimated to attract investments worth Rs 9,500 crore. Additionally, 13,500 acres between Jhansi and Kanpur are acquired for a new industrial city under the Bundelkhand Industrial Development Authority (BIDA), fostering manufacturing growth.
- Airport and Transport: The Noida International Airport (NIA) near Jewar, under construction, is expected to serve as an alternative to Delhi's Indira Gandhi International Airport, relieving pressure and boosting regional economic activity. The budget allocates Rs 50,919 crore for transport, including Rs 38,343 crore for roads and bridges.
- Energy Projects: Renewable energy is a focus, with a 500 MW solar project in Jalaun and a 200 MW project in Jhansi, costing Rs 2,500 crore. These initiatives, supported by Rs 49,987 crore in energy allocations, aim to reduce dependence on oil-rich countries and promote self-sufficiency.
Sectoral Development: Diversifying the Economy
Uttar Pradesh is targeting growth in multiple sectors to diversify its economy, aligning with the $1 trillion goal:
- IT & ITES and Data Centers: The state aims to position cities like Lucknow, Noida, and Varanasi as AI and IT hubs, with a revised target to set up eight data center parks with a 900 MW capacity, up from three initially planned. This is part of a broader strategy to leverage India's AI market, projected to grow from $3.72 billion in 2021 to $13.54 billion by 2028.
- Manufacturing and Industrial Hubs: Investments in manufacturing hubs, such as the semiconductor plant and BIDA industrial city, are expected to pace up the economy. The GCC Policy 2024 aims to make Uttar Pradesh a major hub for Global Capability Centres, with Noida poised to become a semiconductor hub with Rs 32,146 crore in investments.
- Religious Tourism and Cultural Heritage: The state is leveraging its rich cultural heritage, with projects to develop tourism infrastructure, expected to boost economic activity in cities like Varanasi and Ayodhya.
- Agriculture and Allied Activities: With Rs 24,215 crore allocated, the focus is on boosting productivity, including Rs 2,210 crore for animal and buffalo development. This aligns with linking farming to markets, enhancing rural incomes.
Social and Human Development: Building a Skilled Workforce
Social development is integral to sustainable growth, with significant allocations in education, health, and welfare:
- Education: The budget allocates Rs 103,553 crore for education, sports, arts, and culture, including Rs 42,234 crore for non-government primary schools and Rs 18,657 crore for Samagra Shiksha Abhiyan. Plans include increasing Atal Residential Schools' capacity from 360 to 1,000 students, offering free education for children of construction workers, and modernizing educational institutions.
- Health and Family Welfare: With Rs 49,036 crore, the state is enhancing health services, allocating Rs 6,427 crore for urban health and Rs 5,191 crore for rural health, aiming to improve healthcare access.
- Social Welfare and Nutrition: Rs 36,897 crore is allocated, including Rs 10,365 crore for child welfare and Rs 2,207 crore for elderly welfare, ensuring inclusive development.
Urban and Rural Development: Balancing Growth
Urban development receives Rs 25,946 crore, with Rs 6,113 crore for capital outlay, focusing on infrastructure like water supply and sanitation (Rs 28,081 crore, including Rs 18,810 crore under Jal Jeevan Mission). Rural development, with Rs 36,063 crore, includes Rs 6,180 crore for MGNREGA and Rs 5,458 crore for Gram Panchayats, aiming to bridge urban-rural divides.
Financial Overview and Fiscal Strategy
The 2025-26 budget estimates total expenditure at Rs 757,333 crore, with receipts (excluding borrowings) at Rs 665,933 crore, showing a revenue surplus of Rs 79,516 crore (2.6% of GSDP) and a fiscal deficit of Rs 91,400 crore (3% of GSDP). Committed expenditure, including salaries, pensions, and interest, totals Rs 333,927 crore, accounting for 50% of revenue receipts. The debt burden is projected at Rs 9,03,924.54 crore by March 31, 2026, with a debt-to-GSDP ratio of 30.8%.
Upcoming Projects and Long-Term Vision
Beyond the budget, upcoming projects include a cement grinding unit in Prayagraj (Rs 10,000 crore, starting March 2026), a 600 MW pumped storage project in Mirzapur (Rs 33,500 crore, starting April 2026), and a new hospital in Varanasi. The Ghaziabad Master Plan 2031 incorporates Transit-Oriented Development along the RRTS corridor, enhancing urban planning. These initiatives, combined with the state's focus on AI, semiconductors, and green energy, position Uttar Pradesh as a diversified economic powerhouse.
Table: Key Budget Allocations 2025-26 (Rs crore)
| Category | Allocation |
|---|---|
| Education, Sports, Arts | 103,553 |
| Transport | 50,919 |
| Energy | 49,987 |
| Health and Family Welfare | 49,036 |
| Police | 38,777 |
| Social Welfare and Nutrition | 36,897 |
| Rural Development | 36,063 |
| Water Supply and Sanitation | 28,081 |
| Urban Development | 25,946 |
| Agriculture and Allied | 24,215 |
This table highlights the sectoral focus, with infrastructure and education receiving the largest shares, reflecting the state's priorities.
Conclusion
Uttar Pradesh's development plans for 2025-2030 are comprehensive, focusing on infrastructure, sectoral diversification, and social development to achieve the $1 trillion economy goal. Projects like expressways, the Noida International Airport, and data centers are expected to drive economic growth, while investments in education and health ensure sustainable development. These initiatives, backed by significant budget allocations, are poised to take the state forward, positioning it as a key player in India's economic landscape.
Key Citations
- Uttar Pradesh needs 26-27 % year on GDP growth to achieve 1 trillion dollar before 2030
- New & Upcoming Projects in Uttar Pradesh
- Uttar Pradesh Mega Projects & Infrastructure Developments in UP
- Uttar Pradesh Budget Analysis 2025-26
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