World Bank boosts Uttar Pradesh’s economy toward $1 trillion goal

Uttar Pradesh is launching an ambitious agriculture and AI initiative with World Bank support, targeting digital skills development and agricultural transformation in underserved regions. The dual programs represent a strategic push to leverage technology for economic growth while addressing regional disparities, positioning India’s most populous state for participation in emerging technology sectors.

The big picture: The Uttar Pradesh government has launched two major World Bank-backed initiatives – ‘UP AGREES’ and ‘AI Pragya’ – designed to revolutionize agriculture and build AI capabilities across the state.

• The UP AGREES project will deploy Rs 2,737 crore ($365 million) over six years to transform agriculture across 28 districts in the economically disadvantaged Purvanchal and Bundelkhand regions.
• Simultaneously, the AI Pragya program aims to create a skilled workforce by training 10 lakh (1 million) youth in artificial intelligence and emerging technologies.

Key details: Chief Minister Yogi Adityanath formally launched the programs during a meeting with World Bank President Ajay Banga in Lucknow.

• The UP AGREES initiative will directly benefit approximately 10 lakh farmers, with mandatory 30% participation from women and specific support for 10,000 women producer groups.
• The agricultural program includes sending 500 farmers abroad for exposure to advanced farming technologies, with implementation across 21 eastern UP districts and 7 Bundelkhand districts.

Financial structure: The World Bank’s financing package includes favorable terms designed to maximize impact while minimizing financial burden.

• The Rs 2,737 crore ($365 million) World Bank loan carries a modest 1.23% interest rate and a 35-year repayment timeline.
• The Uttar Pradesh government will contribute an additional Rs 1,166 crore ($155 million) to the agricultural initiative, creating a comprehensive funding structure.

Tech industry partnerships: The AI Pragya initiative features collaboration with global technology leaders to ensure world-class training.

• Microsoft, Intel, HCL, Amazon, Google, Wadhwani Foundation, and 1M1B will partner with the state government to implement upskilling programs across Uttar Pradesh.
• The AI training will focus on high-demand skills including machine learning, data analytics, and cybersecurity – creating pathways to employment in the technology sector.

Why this matters: These initiatives represent strategic investment in both traditional and emerging sectors, addressing regional economic disparities while positioning Uttar Pradesh for future growth.

• The programs align with the state’s ambitious goal of becoming a $1 trillion economy, leveraging both agricultural modernization and digital transformation.
• By targeting historically underserved regions like Purvanchal and Bundelkhand, the initiatives address long-standing regional development imbalances within India’s most populous state.

What they’re saying: Chief Minister Yogi Adityanath positioned the initiatives as transformative for the state’s development trajectory.

• “The world now sees Uttar Pradesh not as a barrier, but as the growth engine of India,” remarked the Chief Minister during the launch event.
• Adityanath noted that the World Bank has been instrumental in supporting the state’s development across environmental protection, tourism promotion, and infrastructure development.