Uttar Pradesh is the second largest state-economy in India contributing 8.34% to India's total GDP. Between 2004 and 2009, Uttar Pradesh grew at 6.29% and is now quite close to the miracle growth norm (which is 7% by international norm). Most of the part of this growth was contributed in period of 2007-09 after Mayawati took the charge of Uttar Pradesh. She decided to promote the Lucknow region as another IT destination after Noida. Some IT giants like TCS have already started their campus in Lucknow since 2008-09.
The major economic activity in the state is agriculture; in 1991, 73% of the population in the state was engaged in agriculture and 46% of the state income was accounted for by agriculture. UP has retained its preeminent position in the country as a food-surplus state.
Uttar Pradesh is home to largest number of Small Scale industrial units in the country, with 12% of over 2.3 million units. But, industrial output has been adversely affected by erratic power supply from the UP State Electricity Board and remains far below its full production capacity. Unavailability of adequate raw materials at competitive prices is another negative factor. Also, like in most parts of India, traders and middlemen make most of the profits while the labour class lives at subsistence level. Nevertheless, labour efficiency is higher in UP at 26 than the national average of 25.
With a solid GDP of US$20 billion, Kanpur is the largest economic hub of Uttar Pradesh - followed by Lucknow - that is why Kanpur is assigned the status of economic capital of Uttar Pradesh and is the only city of the State listed in the 'Top 10 Indian cities'. Following are some of the important industrial hubs in the state:
Kanpur is the largest shoe-manufacturing centre in the country with strong leather , engineering ,chemical and other booming sector Industries.
NOIDA is among the top IT (Information Technology) destinations of the country while Lucknow is an emerging one.
Meerut, a manufacturing centre of sports goods, sharp tools like scissors and also of gold ornaments, is regularly listed among the top tax-paying cities in the country.
Mirzapur and Bhadohi are manufacturing centres and worldwide exporters of carpets and cotton durries.
Moradabad, a famous production centre of traditional 'Moradabadi' metalware, has emerged now as a major producer and exporter of stainless steel utensils also.
Aligarh is a manufacturing hub of brass, zinc, aluminium, iron door fittings and is also famous for its padlocks. These items are exported all over the world.
Agra was visited by more than 8 million domestic and 825,000 foreign tourists in 2006, followed by Varanasi, Lucknow, Allahabad, Vrindaban and Mathura.Agra is also famoush for handicraft items, gold jewellery and a number of small scale industries.
Economy is gearing itself to cater to contemporary Western tastes and life style in upper class Uttar Pradeshis; elegant shopping malls are coming up in big cities to satisfy their needs. The economy also benefits from the State's thriving tourism industry.
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