The economic review of Uttar Pradesh has revealed a strong picture of industrial development, export growth and investment attraction. The number of factories doubled, there was a big jump in exports and due to ODOP and infrastructure reforms the state is becoming a major hub for investment.
Lucknow. According to the first economic review presented in the Legislature by Finance and Parliamentary Affairs Minister Suresh Kumar Khanna, the industrial sector of Uttar Pradesh has grown rapidly in the last few years and has now become a strong base of the state’s economy. Investment in sectors like electronics, defense production, textiles, food processing and renewable energy has increased continuously.
In the year 2025, under industrial promotion schemes, incentive amount of about ₹ 4,000 crore was given to investors, which further strengthened their confidence. Industrial corridors, expressway networks and modern infrastructure projects have made the state an attractive destination for industries.
Doubling increase in number of factories, new employment opportunities
According to the Economic Survey, the number of factories registered under the Factories Act 1948 has more than doubled. While 14,169 factories were registered in 2016-17, this number increased to 30,695 by November of the financial year 2025-26. This is being considered a big sign of industrial development, investment attraction and employment creation. The latest report of the Annual Industry Survey showed a 25% growth in gross value addition of the state’s industries over the previous year, which is the highest in the country and much higher than the national average of 11.9%.
Record increase in exports, increasing participation in global market
Uttar Pradesh has also achieved remarkable achievements in terms of exports. Exports from the state were worth ₹0.84 lakh crore in 2016-17, which increased to ₹1.86 lakh crore in 2024-25. Till November of the financial year 2025-26 itself, exports worth ₹1.31 lakh crore have been made.
Uttar Pradesh was ranked fourth in the Export Preparedness Index 2024, released in January 2026, while it was ranked seventh in 2022. The state stood first in the category of landlocked states, which is considered to be the result of better logistics, export infrastructure and policy reforms.
Uttar Pradesh leading state in investment attractiveness
Uttar Pradesh is also moving forward in attracting investment. The state signed investment agreements worth more than ₹2.94 lakh crore in the World Economic Forum 2026 held in Davos. These agreements include key areas such as AI data centres, food processing, renewable energy, waste-to-energy and defense manufacturing. Uttar Pradesh has been placed in the ‘A-1 Top Performer’ category in the fifth edition of the Government of India’s State Startup Ecosystem Ranking.
Global recognition to local industries through ODOP scheme
Local products have been promoted under the One District One Product (ODOP) scheme. Margin money of ₹890.44 crore was disbursed from 2018-19 to December 2025, creating over 3.22 lakh jobs. Buyers from about 70 countries participated in the International Trade Show held at Expo Mart, Greater Noida in September 2025, which gave the state’s products a global platform.
Trust Based Governance and Ease of Doing Business Reforms
According to the Economic Review, Uttar Pradesh is now moving beyond ease of doing business towards a trust based governance model. The state ranks first in the country in compliance reduction. Deregulation, investment friendly single window system and reforms from land to labor have created a transparent, fast and investment-friendly environment.