The second largest economy in India after the state of Maharashtra is that of Uttar Pradesh. The gross state domestic product of Uttar Pradesh was $339.5 billion by PPP and $80.9 billion in the year 2004. The economy grew only 4.4% per year from 1999 to 2008. However from 2007 to 2011, the economy of Uttar Pradesh grew at over 7% GDP growth rate. This was the time when Indian economy experienced the melt down due to global recession.
Uttar Pradesh has registered growth rates higher than its target set for the 11th Plan period. The growth rate of 7.28% was registered against the target of 6.10%. Uttar Pradesh’s debt was estimated at 67 % of GDP in the year 2005. Uttar Pradesh offers a wide range of policy, subsidies and fiscal incentives. It has greatly drafted the policies for Information Technology as well as for biotechnology.
Uttar Pradesh has a great base of skilled labour that makes it an ideal place for knowledge based sectors. Uttar Pradesh has a good connectivity with 43 national highways, 6 major airports and railways to all major cities.