In type 2 DM, increased fasting plasma glucose is predominantly due to

Insulin resistance impairs glucose utilization by insulin-sensitive tissues and increases hepatic glucose output; both effects contribute to the hyperglycemia. Increased hepatic glucose output predominantly accounts for increased FPG levels, whereas decreased peripheral glucose usage results in postprandial hyperglycemia. Glucose metabolism in insulin-independent tissues is not altered in type 2 DM.Ref: Harrison 19e pg: 2405