Lucknow: According to the first Economic Review presented in the Legislature by Finance and Parliamentary Affairs Minister Suresh Kumar Khanna, UP’s industrial sector has witnessed unprecedented expansion in recent years and has emerged as a strong backbone of the state’s economy. Investments have grown rapidly in sectors such as electronics, defence manufacturing, textiles, food processing and renewable energy.
In 2025, incentive payments amounting to nearly ₹4,000 crore were made under various industrial promotion schemes, strengthening investor confidence. Industrial corridors, an extensive expressway network and modern infrastructure projects have made Uttar Pradesh an attractive destination for industries.
The Economic Review states that the number of factories registered under the Factories Act, 1948 has more than doubled. While 14,169 factories were registered in the state in 2016-17, this number rose to 30,695 by November of the financial year 2025-26.
This is seen as a strong indicator of industrial progress, investment attraction and employment generation in the state. Additionally, the latest Annual Survey of Industries reports a remarkable 25% year-on-year increase in the Gross Value Added (GVA) of state industries, the highest among major states and more than double the all-India average growth rate of 11.9% .
Uttar Pradesh has achieved notable success on the export front as well. According to the Economic Survey, exports from the state stood at ₹0.84 lakh crore in 2016-17, which more than doubled to ₹1.86 lakh crore in 2024-25. In the financial year 2025-26, exports worth ₹1.31 lakh crore have already been recorded up to November.
This growth reflects the state’s manufacturing capacity, policy-driven development and increasing presence in global markets. In the Export Preparedness Index 2024 released by the Government of India in January 2026, Uttar Pradesh secured the fourth position, improving from seventh place in 2022. Among landlocked states, Uttar Pradesh ranked first in the index, attributed to improvements in export infrastructure, logistics and policy support.
Uttar Pradesh is also at the forefront in attracting investments. At the ‘World Economic Forum 2026’ held in Davos, the state signed investment agreements worth over ₹2.94 lakh crore, covering key sectors such as AI-ready data centers, food processing, renewable energy, waste-to-energy and defence manufacturing. In the 5th edition of the State Startup Ecosystem Ranking released by the Government of India, Uttar Pradesh has been placed in the top performer category ‘A-1’.
Under the ‘One District One Product (ODOP)’ scheme, local industries have been given global recognition. From 2018-19 to December 2025, margin money worth ₹890.44 crore was distributed, generating employment for more than 3.22 lakh people. The third International Trade Show held in September 2025 at the Expo Mart in Greater Noida witnessed participation from buyers of nearly 70 countries, providing a global platform to Uttar Pradesh’s One District One Product initiatives.
According to the Economic Survey, Uttar Pradesh is progressing beyond ‘Ease of Doing Business’ towards a ‘Trust-Based Governance model’. The state ranks first in the country in compliance reduction. Deregulation, a single-window system through ‘Nivesh Mitra’ and reforms spanning land to labour have ensured a transparent, fast and investment-friendly environment.
