Uttar Pradesh (UP) is one of the mostdensely populated states in India with high rates ofpoverty. The state is a major contributor to theagricultural staples of the country and, at present, a largepercentage of the state s labor force is engaged inlow-productivity agricultural activities with theagricultural sector employing 60 percent of all formalworkers at the state level. The purpose of this report is topresent a range of options for regional development in UP byleveraging spatial development patterns along the EasternDedicated Freight Corridor (EDFC). The report reflects theGovernment of India (GoI)-World Bank s India countrypartnership strategy that promotes balanced regional growth.The report focuses on identifying potential sub regions forlogistic hubs and industrial development in the UP districtsand develops an economic potential index (EPI) to assess thelikely impacts of investments. Using this methodology, foursub-regions have been identified for economic development,namely: (i) Auraiya-Kanpur; (ii) Ghaziabad-Gautam BuddhaNagar; (iii) Aligarh-Hathras-Firozabad-Agra; and (iv)Allahabad-Varanasi. This report is part of a three-phaseexamination of potential economic development along theEDFC. The report presents the results of economic modelingto determine the best locations in the state to concentratelogistics hubs, industrial estates, and infrastructureinvestments. The modeling approach assesses sixcharacteristics in each district associated with variationsin economic productivity, namely: (i) market accessibility;(ii) industrial diversity; (iii) commodity flow; (iv) percapita industrial investment; (v) agriculturalspecialization; and (vi) poor social conditions. The reporthas eight sections, namely: section one is introduction;section two gives overview of UP; section three presentsUP s economy and infrastructure: a synopsis; section fourgives UP s district economies and economic potential index:key factors; section five presents criteria for locatinglogistics and industrial hubs within promising sub-regionsin UP; section six focuses on moving towards implementation;section seven gives conclusion; and section eight presents annexes.