Introduction
Uttar Pradesh is a state of medium industrial development. Due to a lack of minerals, infrastructure facilities, and capital investment, the development of non-agriculture-based industries has been limited, while agriculture-based industries and small-scale and cottage industries have seen more growth. The state’s agriculture-based industries include textiles, sugar, vegetable oil, and more. Other major industries in the state include cement, textiles, leather, alcohol, paper, glass, chemicals, agricultural machinery, and glass, among others.
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Industrial Development of Uttar Pradesh: A Comprehensive Overview
Initiatives for Industrial Growth
Key Industrial Sectors
Notable Industrial Developments
Challenges and Solutions
Future Outlook
Conclusion
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Udyog Bandhu
- In 1981, Udyog Bandhu was established in the state as a high-level committee to facilitate the establishment of small, medium, and large-scale industrial units and ensure the resolution of related issues. The aim was to provide appropriate assistance for addressing timely setup and problem-solving for industrial units. In June 2020, Udyog Bandhu was updated and reconstituted as “Invest UP.”
Industrial Investment and Employment Promotion Policy
- On November 3, 2022, the state government approved the Uttar Pradesh Industrial Investment and Employment Promotion Policy 2022. This policy aims to facilitate the rapid availability of land for large investors to establish industrial units, encourage the relocation of industries established abroad to Uttar Pradesh, and provide special incentives to investors who take over sick industries.
Uttar Pradesh Industrial Investment and Employment Promotion Policy 2017
- In July 2017, the state government of Uttar Pradesh announced the Uttar Pradesh Industrial Investment and Employment Promotion Policy 2017. This policy emphasises the development of Uttar Pradesh as a high-level investment destination to create maximum employment opportunities and achieve sustainable and balanced development in the state.
- “Make in UP” Division was established in this policy, and it was mentioned that the Uttar Pradesh Investment Promotion Board, chaired by the Chief Minister, would also be formed.
A brief description of the state’s major industries
Cotton textiles / Handloom industry
Based on the recommendation of the “Ram Sahay Commission,” the Handloom and Textile Directorate was established in the state on September 16, 1972. This Directorate oversees 13 regional offices operating in various districts.
From the perspective of the handloom and textile industry, Uttar Pradesh ranks third in India. The handloom industry here is the second-largest employment provider after agriculture. One-fourth of the country’s total handloom entrepreneurs are found in this region. It is the largest industry in the state.
Uttar Pradesh has long been renowned for its artistic textiles, such as Varanasi’s silk sarees, Sitapur’s dharis, Gazipur’s katwa parda, Amroha’s pile work, Gorakhpur’s bed covers, Ghaziabad’s terry towels, and more.
Handloom weaving of cotton textiles is prevalent in cities such as Kanpur, Agra, Bareilly, Meerut, Ghaziabad, Tanda, Hardoi, Hathras, Aligarh, Saharanpur, Badaun, Prayagraj, Mau, Varanasi, Rampur, Muradabad, Mirzapur, Modinagar, and Ujhani, among others. Kanpur is often referred to as the “Manchester of North India.”
The manual production of textiles by hand is primarily carried out in cities like Varanasi, Mau, Bilaspur, Sandila, Lucknow, Gorakhpur, Maghar, Farrukhabad, Mathura, Rampur, Mirzapur, Aligarh, Agra, Tanda, Barabanki, Amroha, Mubarakpur, Devband, Sikandarabad, Dhamapur, Etawah, and other cities.
Varanasi’s silk saris, Lucknow’s Chikankari embroidery, and Rampur’s fine textile weaving are world-renowned.
The printing work of quilts and covers is carried out in Farrukhabad, Jehangirabad, Pilkhua, and Mathura. Mathura is known for its printing work on muslin fabric.
The work of making carpets and rugs is done in Mirzapur, Bhadohi, Mathura, Bareilly, Agra, Sitapur, and Aligarh.
Blankets are made in Muzaffarnagar, Najibabad, and Lavad (Meerut).
Approximately 6.64 lakh weavers earn their livelihood from this industry in the state.
Uttar Pradesh State Textile Corporation :
- Established in 1969 as a government company under Uttar Pradesh government.
- Converted into a public limited company in 1973.
- Operated a total of five mills:
- Jhansi
- Sandila
- Meerut
- Kashipur
- Jaspur
- The last two mills (Kashipur and Jaspur) were transferred to Uttarakhand.
- The remaining three mills were closed due to financial losses.
- In 1974, two spinning institutions (U.P. State Spinning Co., Ltd. and U.P. State Yarn Co., Ltd.) were formed in the state to cooperate with this corporation.
- State Spinning Company Ltd. had a total of 4 spinning mills (Rae Bareli, Barabanki, Mau and Akbarpur) with 25,000 spindles. These were closed in October 2005.
- Uttar Pradesh State Yarn Company Ltd. had a total of 4 spinning mills (Meja-Prayagraj, Rasda-Balia, Jaunpur, and Banda) with up to 50,000 spindles, two of which were closed in 2000.
Reservation of Handloom Textiles in India :
- To prevent the production of textiles typically crafted by handlooms on power-looms, the Indian government introduced the Handloom (Reservation of Articles for Production) Act in 1985.
- This legislation reserves the production of 11 specific textile products, including cotton and silk sarees, cotton and silk dhotis, towels, gamcha, blankets, carpets, and lungi, exclusively for handloom weaving.
- The Act aims to support and protect the traditional handloom industry in India by ensuring that these designated products are crafted using handloom techniques, thereby preserving the unique artistry and craftsmanship of handwoven textiles.
- By safeguarding the handloom sector, the government aims to promote employment opportunities, especially in rural areas, and maintain the cultural heritage associated with handloom textiles.
- The reservation of articles for handloom production aligns with broader initiatives to promote sustainable and traditional craftsmanship in the textile industry.
- 10% discount is offered by the central government on the sale of handloom textiles. This discount is provided during special fairs/exhibitions.”
- With the assistance of the central government, the Handloom Export Scheme has been in operation since November 2007.
Uttar Pradesh Textile and Garmenting Policy-2022 :
- Approval Date : October 2022
- Main Objective : Establish Uttar Pradesh as a global textile manufacturing hub
- Promotion of Textile Industry : Encourage all types of units related to the textile industry
- Investment Target : Attract an investment of 10,000 crores INR
- Job Creation : Aim to create 5 lakh jobs in the textile industry.
Mahatma Gandhi Bunkar Bima Yojana ( MGBBY ) :
- The Mahatma Gandhi Bunkar Bima Yojana is being implemented by the Government of India since 2008-09.
- The objective of this scheme is to provide insurance coverage to registered weavers aged between 18 to 50 years and 51 to 59 years.
Khadi Gramodyog
Khadi-Gramodyog ( Khadi Village Industries ) :
- The term “Khadi” refers to cloth woven from hand-spun cotton, silk, or wool yarns, or a combination of these types of yarns. On the other hand, “Gramodyog” refers to industries located in rural areas. These industries produce goods with or without the use of electricity, provide services, and have a permanent capital investment per worker of less than fifty thousand rupees.
UP Khadi and Village Industries Board :
- In the state, the supervision of Khadi and Village Industries activities is carried out by the Khadi and Village Industries Board, established in 1960. The board’s objective is to establish small-scale industries and industries with low capital investment in rural areas, thereby creating more employment opportunities and strengthening the rural economy.
- The assistance/loan facility provided by the Uttar Pradesh Khadi and Village Industries Board is available to registered Village Industries Associations, registered NGOs, individual entrepreneurs, educated unemployed youth, women, as well as members of SC and ST communities.
Schemes under the Khadi and Village Industries Sector :
- Chief Minister’s Village Industries Employment Scheme : Provides loans of up to 10 lakhs INR to individual entrepreneurs.
- Prime Minister’s Employment Generation Programme : Aims to generate employment opportunities.
- Rural Employment Generation Programme : Offers loans up to 25 lakhs INR with a 10% margin money grant.
- Various training programs for different industries are also available.
On the occasion of Gandhi Jayanti, a 10% discount is offered on the sale of Khadi textiles and clothing by accredited Khadi institutions/committees for 108 working days, based on the state government’s revenue and expenditure.
Silk Industry
Introduction :
- China is the largest producer of natural silk in the world.
- India ranks as the second-largest producer of natural silk globally.
- There are four primary types of silk produced worldwide: Mulberry, Tussar, Eri, and Muga.
- India produces all four types of silk.
- Muga silk production is exclusive to India, particularly in Assam.
In Uttar Pradesh, the production of Mulberry, Tussar, and Eri silk occurs.
- Mulberry silk is derived from Mulberry tree leaves.
- Tussar silk caterpillars feed on Arjun and Saja tree leaves.
- Eri silk caterpillars feed on Castor plant leaves.
In the state, the production of Mulberry, Tussar, and Eri silk is carried out in 56 districts, including Lakhimpur Kheri, Mirzapur, Sonbhadra, Chandauli, Bahraich, and others.
In the state, there are a total of 160 government-owned Mulberry silk farms in 43 districts, including Sonbhadra, Bahraich, Chandauli, Lakhimpur, and others.
In the state, the Tussar silk development scheme is being implemented in 12 districts, including Sonbhadra, Chandauli, Mirzapur, Jhansi, Lalitpur, Fatehpur, Chitrakoot, Mahoba, Jaunpur, Sultanpur, Mathura, and others. Currently, there are a total of 63 government-owned Tussar silk farms established in the state.
The Eri silk development scheme is being implemented in 8 districts of the state, including Fatehpur, Kanpur Nagar, Kanpur Dehat, Hamirpur, Banda, Chitrakoot, Jalaun, and others. There are a total of 5 government-owned Eri (Castor) silk farms in the state.
In the total silk production in the state, the highest contribution comes from Mulberry silk, followed by Tussar and Eri silk, respectively.
In the state, most of the silk work is done in districts such as Varanasi, Mau, Etawah, and others. Varanasi’s silk sarees are globally renowned.
In 1992, the State Cooperative Sericulture Federation was established to promote growth in silk production. Currently, the federation has 74 cooperative societies as its members in the state.
Silk Research and Development Centers in Uttar Pradesh :
- Mulberry silk research and development : Subhagpur Silk Research and Development Centre (Gonda)
- Tussar silk research and development : Sonbhadra
- Eri silk development and research : Kanpur Nagar Silk Research and Development Centre
Sugar Industry
Introduction :
- Sugarcane is a major cash crop in the state.
- Uttar Pradesh contributes around 50% of the country’s total sugarcane cultivation.
- It provides employment to over 3 million sugarcane farmers, mill workers, and workers in the jaggery and khandsari industry.
- The Ganga-Yamuna Doab region is a significant hub for sugar production, accounting for approximately 65% of the state’s sugar production.
- The remaining sugar production occurs in the eastern districts of Uttar Pradesh.
Development of Sugar Industry :
- Sugarcane is a plant of Indian origin.
- Initially, it was used to make jaggery and molasses.
- In 1903, the British established India’s first sugar mill in Pratappur (Deoria).
- Over 50 mills were established soon after.
- In 1935, the Sugar Department was formed to control and promote their development.
- In 1938, the Sugar Department was further developed, and the Sugar Factories Control Act-1938 was implemented.
Sugarcane Development Initiatives in Uttar Pradesh :
- Sugarcane Development Councils :
- In 1948-49, with the aim of implementing various measures to increase production in the sugarcane producing regions, Sugarcane Development Councils were formed.
- Currently, there are a total of 152 Sugarcane Development Councils in the state.
- Sugarcane Development Committees
- In 1948-49, the state established several Sugarcane Development Committees.
- Uttar Pradesh Cooperative Sugarcane Federation Ltd.
- The Uttar Pradesh Cooperative Sugarcane Federation Ltd. was founded in 1949 to support these committees.
- Presently, there are 169 cooperative sugarcane development committees operating under this federation.
- The Lal Bahadur Shastri Sugarcane Farmers’ Institute.
- The Uttar Pradesh Sugarcane Farmers’ Institution was founded in 1975 in Lucknow.
- Its primary mission is to offer training in sugarcane farming practices and sugar industry-related technologies.
- The institution has been renamed as the Lal Bahadur Shastri Sugarcane Farmers’ Institution.
- Branch training centers affiliated with the institution are located in five districts : Gorakhpur, Moradabad (formerly Varanasi), Shahjahanpur, Gonda (Rajjanpur), and Muzaffarnagar.
- Uttar Pradesh Council of Sugarcane Research
- The Uttar Pradesh Sugarcane Research Council was established in 1976-77.
- Its primary purpose is to conduct research on various aspects of sugarcane cultivation.
- There are 9 sugarcane research centers and seed development regions under this council.
- These centers are located in different districts, including Muzaffarnagar, Gorakhpur, Khiri, Kushinagar, Ghazipur, Sultanpur, and Balrampur.
- Kushinagar and Khiri districts have two research centers each.
Sugar producing Area :
- Total of 44 sugarcane-producing districts in the state.
- There are 9 sugarcane-producing regions: Meerut, Saharanpur, Moradabad, Bareilly, Lucknow, Ayodhya (Faizabad), Deoria, Gorakhpur, and Devaria.
- Additionally, there are 3 sugar-producing regions: Meerut, Bareilly, and Lucknow.
The Uttar Pradesh Cooperative Sugar Factories Federation Ltd.
- In 1963, the Uttar Pradesh Cooperative Sugar Mill Federation was established.
- Currently, there are 24 sugar mills under it.
Uttar Pradesh State Sugar Corporation Ltd.
- The Uttar Pradesh State Sugar Corporation Ltd. was established in 1971 under the Uttar Pradesh Sugar Undertakings (Acquisition) Act.
- Initially, it oversaw 33 sugar mills in the state.
- Currently, the majority of these mills have ceased operations, with only 1-2 remaining operational.
Other facts :
- There are approximately 100 private sugar mills in the state.
- In order to attract capital investment in the sugar industry, the Sugar Industry Promotion Policy 2004 was announced in 2004.
Cement Industry
Cement industry is vital in the state. Cement factories are situated in various locations including :
- Chunar and Kajrahat (Mirzapur)
- Churk and Dalla (Sonbhadra)
- Gauriganj and Jagdishpur (Amethi)
- Kasganj
- Jhansi
- Sikandarabad (Bulandshahr)
- Tanda (Ambedkar Nagar)
- Raebareli
Electronic Industry
- Rapid development of the electronic industry in the state.
- Several electronic plants established in Gautam Buddh Nagar, Ghaziabad, and Lucknow.
- State government-owned Opteron factories located in Lucknow, Prayagraj, Jaunpur, and Varanasi.
Leather Industry
- The main centre of the leather industry in the state is Kanpur.
- Leather shoes, suitcases, belts, and wallets are produced in Agra, Lucknow, Meerut, Bareilly, and Kanpur.
- There are 86 centers in the state for tanning and dyeing leather.
Vegetable Industry
- The state has vegetable ghee factories located in Kanpur, Modinagar, Meerut, Prayagraj, Aligarh, and Ghaziabad.
- Additionally, modern large-scale edible oil mills are situated in Kanpur, Agra, Ghaziabad, Hapur, and Modinagar (Meerut).
Chemical Industry
- Sulphuric acid and bio-sulphide factory in Kanpur
- Soda ash and ammonia chloride factory in Varanasi
- Artificial rubber factory in Bareilly
- Factory for sulphuric acid and other chemicals in Ghaziabad
- Factory for preparing iron particles mixed with silica sand in Shankargarh, Prayagraj
Glass Industry
- Uttar Pradesh is a significant hub in the glass industry in India.
- Major glass production centers in the state:
- Bahjoi ( Sambhal )
- Prayagraj (Allahabad)
- Firozabad
- Ghaziabad
- Meerut
- Lucknow
- Makkhanpur (Firozabad)
- Hirangaon
- Varanasi
- Sasani
- Hathras
- Balabali, etc.
- Firozabad is particularly famous on a global scale for its production of glass bangles.
Aluminium industry
- Hindalco, the Hindustan Aluminium Corporation, situated in Renukoot (Sonbhadra), is involved in producing aluminium ingots and sheets using bauxite.
- Various cities, including Agra, Aligarh, Meerut, Kanpur, Mathura, Hathras, and others, host factories specialising in the production of utensils from aluminium sheets.
Engineering industry
The engineering industry manufactures various types of machinery and equipment. Such industries are established in districts like Ghaziabad, Kanpur, Prayagraj, Lucknow, Agra, and more in the state.
Fertilizer Industry
Major urea fertilizer production plants in Uttar Pradesh :
- Kanpur
- Bareilly
- Prayagraj (Phulpur)
- Gorakhpur (undergoing revival through private collaboration)
Phosphate fertilizer manufacturing plants in the state:
- Magarwara (Unnao)
- Kanpur
- Prayagraj
Spirit and Liquor Industry
Spirit and liquor manufacturing factories are located in Ghaziabad, Unnao, Lucknow, Rampur, Meerut, Gorakhpur, Saharanpur, Daurala, Mansurpur, and Nawabganj in the state.
Agricultural Machinery Industry
In the state, the agricultural machinery manufacturing industry is located in cities such as Agra, Aligarh, Meerut, Kanpur, Lucknow, and others. Here, various equipment for sowing, plowing, harvesting, sifting grain, dairy farming, poultry farming, pesticide production, and farm transportation, etc., are produced.
Bicycle Industry
In the state, the major centers of the bicycle industry are Agra, Varanasi, Rampur, Lucknow, Kanpur, and Prayagraj. Here, bicycles such as Royal Prince, Popular Hansa, Jai hind, Asia, Saibro, and others are manufactured.
Brass and Other Metal Industry
- In the state, the manufacturing of brass and brass utensils is carried out in Varanasi, Mirzapur, Farrukhabad, Hathras, Atrauli, Moradabad, Shamli, Hapur, and Badaun.
- The work of plating and carving on utensils is carried out in Moradabad and Mirzapur.
- Locks, brass pliers, knives, and scissors are manufactured in Hathras, Mathura, Aligarh, and Meerut, with Aligarh serving as the primary centre for lock production.
- Brass statues are manufactured in Aligarh, Moradabad, and Ayodhya.
- Iron weights are produced in Saharanpur and Agra
Woollen Textile Industry
Woollen textile mills are located in Kanpur, Ghaziabad, Shahjahanpur, and Mirzapur. Kanpur’s Lal Imli Mill was India’s leading woollen textile mill, but it is currently closed.
Jute Industry
In Uttar Pradesh, there are three jute mills, with two in Kanpur and one in Shahjahanwan (Gorakhpur).
Soap Industry
In the state, soap manufacturing factories are concentrated in Kanpur, Agra, Modinagar, Ghaziabad, Meerut, and other cities.
Paper Industry
The state has the maximum number of paper mills in Muzaffarnagar, followed by Meerut, Saharanpur, Ghaziabad, Moradabad, Rampur, and Unnao. Bagasse is used as raw material in some of these mills.
Ceramic (Pottery) Industry
In the state, earthenware (pottery) utensils are manufactured in Khurja (Bulandshahr), Mirzapur, Sonbhadra, and Ghaziabad.
Wood and furniture industry
- The industry of crafting wooden furniture and toys in the state is concentrated in Hathras, Varanasi, Saharanpur, and Bareilly.
- Wood carving work is done in Saharanpur and Nagina (Bijnor).
- Wooden toys are made in Lucknow and Varanasi.
- Canes and sticks are made in Bareilly.
- Sports goods are manufactured in Meerut and Agra.
Infrastructure Facilities : Industrial Development Authority
To accelerate the industrial development of the state, Noida was established in 1976 as the first industrial town, i.e., the Industrial Development Authority.
After Noida, many other industrial development authorities were established in the state, such as:
- SIDA in Jaunpur
- GIDA in Gorakhpur
- BIDA in Bhadohi
- Greater Noida near Noida, etc.
New Okhla Industrial Development Authority (Noida)
- Noida was established in 1976 in an area of 20,316 acres to accelerate industrialisation in the state and attract entrepreneurs.
- It aimed to offer competitive rates compared to the national capital, Delhi.
- Noida provides all the necessary infrastructure facilities for industrial development.
- The entire Noida is currently connected with a fiber optic network.
- This region, located in the Gautam Buddh Nagar district, is the most developed area in the state from an industrial perspective.
- Noida offers comprehensive development, a pollution-free environment, a high standard of living, and highly supportive industrial conditions.
- It provides world-class basic facilities for businesses and residents.
- On November 12, 2009, it was connected to the Delhi Metro.
- In Noida’s Industrial Phase-1, 2, and 3, there are a total of 1989 industrial units, including large, medium, and small enterprises.
- The Software Technology Park of India, located in Sector-29, is the country’s second-largest software exporting hub.
- A special economic zone has been established in the second phase.
- Ambedkar Multi-Specialty Hospital has been established here.
- Sector 18 has a multi-level parking facility.
Gorakhpur Industrial Development Authority ( GIDA )
- In the Gorakhpur development area, GIDA (Gorakhpur Industrial Development Authority) was established in 1989 to promote rapid industrial development. There are a total of 23 sectors in this authority.
- Under this authority, apart from industries, initiatives like ‘New Gorakhpur Residential Plan,’ ‘Apparel Park,’ ‘Textile Park’, and ‘Transport Nagar’ are being established.
- To ensure the conservation of agricultural products and provide farmers with fair prices, a ‘Food Park’ is being set up on 105 acres of land.
- The prominent industries in this area include alcohol production, textile weaving, textile processing, power looms, disposable series, bakeries, toffee manufacturing, food processing, footwear manufacturing, PVC pipes, mineral water, carry bags, disposable glass, and packaging units, among others.
Satharia Industrial Development Authority (SIDA)
- SIDA was established in 1989.
- It is situated in a 508-acre area encompassing the village of Satharia in the Machhlishahr Tehsil of Jaunpur, along with 37 surrounding villages.
- Several industrial units are operational in this region.
Greater Noida Industrial Development Authority (GNIDA)
- After the successful experiment of Noida by the state government, Greater Noida Phase-1 was established in 1991 by amalgamating 117 villages. Subsequently, on June 14, 2006, Phase-2 was established by including 167 villages.
- The objective of Greater Noida is to create an excellent urban settlement near the National Capital Region, which can also be referred to as the ‘Art of Living’.
- According to the plan of this authority, a Master Plan up to 2021 has been prepared, which includes 25% green area, 19% industrial area, 12% institutional area, 6% commercial area, and 25% residential area.
- In an area of approximately 570 hectares, the establishment of a ‘Knowledge Park‘ is underway, which will be India’s largest knowledge-based campus. It will house prominent institutions, including 5 engineering, 3 management, one marine, one architecture, and one other subject-based institution.
- To promote the art and culture of the region, the establishment of the ‘Patel Folk Cultural Institute‘ is underway, which includes a decision to build a studio and an auditorium.
- The construction of the Yamuna Expressway from here to Agra and the Expressway between Noida and Greater Noida has been completed.
- In this region, construction is underway for a Technology Park on 300 acres, a Warehouse House on 100 acres, a Biotech Park on 100 acres, a Toy City and Toy Design Institute on 125 acres, a the Mall Street, a Container Depot, and a 400 kV Electrical Substation on 400 acres.
- Here, the first Women Entrepreneurs Park in North India has been established, dedicated to women entrepreneurs.
- With the aim of developing the exhibition ground into a ‘Trade Mart‘ in view of the increasing crowd at Pragati Maidan in Delhi, which will serve as a major centre for the sale of traditional products of the state.
- The state government established a university (Gautam Buddha University) here in 2002. Its construction was carried out by the Greater Noida Authority through joint contributions from Noida and Greater Noida.
- A multi-specialty hospital with 500 beds is being constructed in a 15-acre area near the Yamuna Expressway in Greater Noida.
- In Greater Noida, considering the future population pressure, a project for drinking water using Ganga water is being undertaken.
- Following Singapore’s model for environmental balance, entertainment, and conservation of endangered species, a night safari park is being developed on the Yamuna Expressway in Greater Noida.
- Here, a highly functional transportation corridor is being established parallel to the Bodaki railway line.
- A sports complex is being constructed on approximately 39 acres of land near the City Park. It will provide facilities for various sports, including cricket.
- A Formula-1 motor racing circuit called the ‘Buddh International Circuit‘ has been built here by the J.P. Group.
Lucknow Industrial Development Authority (LIDA)
- Established in 2005
- Located between Lucknow and Unnao
- Includes Amausi Airport within its jurisdiction
- Comprises 49 villages from Lucknow and 43 villages from Unnao
- Headquarters in Lucknow
- Aims to provide world-class infrastructure facilities, following the Noida / Greater Noida model
Yamuna Expressway Industrial Development Authority (YEIDA)
The Yamuna Expressway Industrial Development Authority (YEIDA) was established on April 24, 2001. It encompasses a total of 1187 villages in the notified area, including Gautam Buddh Nagar, Bulandshahr, Aligarh, Hathras, Mathura, and Agra. Affected farmers have been provided with resettlement and rehabilitation facilities.
Under this authority, a 6-lane expressway, spanning from Greater Noida to Agra (165.53 km), was constructed by JP Infratech Ltd. This expressway was inaugurated and opened for use on August 9, 2012.
Interchanges have been constructed at three locations on this expressway, namely Gautam Buddh Nagar, Mathura, and Agra. These locations provide facilities such as petrol stations, vehicle repair services, restaurants, roadside eateries, and entertainment options.
Under this authority, planned development is underway for the designated areas. Within this region, the construction of India’s first Formula-1 racing track was carried out by the JP Group.
Additionally, residential townships and other developments are also being established within this authority.
U.P. Expressway Industrial Development Authority (UPEIDA)
The UPEIDA was established in December 2007, primarily for the purpose of expressway projects.
Infrastructure Facilities
Industrial Area/Park
Under the Industrial Directorate, the establishment of small and large industrial units has been initiated in more than fifty districts of the state. Infrastructure facilities are available in industrial areas and estates.
The State Industrial Development Corporation has also developed several industrial parks for specialised production with the permission and cooperation of the Indian government. These include Textile Park, Hosiery Park, Apparel Park, Leather Park, EMRO Park, Plastic Park, Toy Park, Artisan Park, and more.
Major Exporting Zone
There is immense potential for the export of various goods in the state. Therefore, the Export Promotion Bureau was established in 1999 to promote exports.
Export Promotion Industrial Parks have been set up in Greater Noida and Agra.
A special economic zone has been created in Noida to promote the export of gems and jewellery. Similarly, to promote the export of electronic software, a Special Economic Zone has been established in Moradabad. The major exporting zones of the state declared by the state government are as follows :-
- Noida : Precious stones and jewellery, electronics, textiles, computers, hardware, software, leather.
- Agra : Silk carpets, handicrafts, marble products, artistic goods, bags, etc.
- Moradabad : Art metalware, artistic jewellery, bone jewellery, etc.
- Lucknow :Miniature painting, floriculture, Ayurvedic/herbal medicines, camel bone carving, etc.
- Kanpur : Leather products, software, chemicals, handloom, pharmaceuticals, spices, oils, and perfumes, etc.
- Varanasi : Silk, handmade handicrafts, wooden toys, etc.
- Jhansi and Lalitpur : Brassware and similar products, etc.
SEZ
In order to promote exports, the Government of India declared a policy in 2000-01, known as the Import-Export Policy, which included the establishment of Special Economic Zones (SEZs) in various parts of the country. According to this policy, SEZs can be set up in public, private, joint, and state government sectors. In this context, the state government initiated the establishment of such zones in Uttar Pradesh in 2002 through the Uttar Pradesh Special Economic Zones Development Act. In 2007, the policy for Special Economic Zones (Amended) in Uttar Pradesh was also issued.
Until the year 2021-22, approval has been granted for 31 Special Economic Zones (SEZs) in the state. Among these, 74% are in the IT/ITES sector, followed by 20% in multiple products, 3% in textiles/handicrafts, and 3% in non-conventional energy.
Currently, 9 SEZs are operational, while others are in various stages of development and construction. One of the active SEZs, known as the Noida Special Economic Zone, is of a multi-product nature established by the central government, and it is one of the 8 Export Processing Zones in the country.
Active SEZs are as follows —
- Noida Special Economic Zone (SEZ) – This is not only an SEZ for the country and the state but also one of the 8 Export Processing Zones in the country.
- Moser Baer India Ltd., Greater Noida
- C.U. Developers Ltd., Noida
- HCL Technologies, Noida
- NIIT Technologies, Noida
- Aachvis Softech Private Limited, Greater Noida
- SEZ for Handicrafts, Moradabad
- Arshiya Northern FTWZ Limited, Khurja; Bulandshahr
Micro, Small, and Medium Enterprise Facilities
Uttar Pradesh ranks first in terms of the number of micro, small, and medium-sized enterprises.
In the state, the Uttar Pradesh Small Industries Corporation, Uttar Pradesh Export Corporation, Bhadohi Industrial Development Authority, Uttar Pradesh Export Promotion Bureau, Industry Directorate, and District Industry Centers are particularly active in the development and promotion of small industries and export incentives.
Several schemes are being implemented in the state for the rapid development of small industries. These include the Quick Export Promotion Scheme, Small Industry Cluster Development Scheme, Small Industry Technical Upgradation Scheme, Entrepreneur Development Training Program, Integrated Infrastructure Development Centre Scheme, Small Entrepreneur Award Scheme, Artisans Training and Industry Bond Scheme, and more.
As of October 2, 2006, under the “Micro, Small, and Medium Enterprises Development Act – 2006,” the registration system for small industries has been discontinued.
With the assistance of the central government, the State Industrial Development Corporation is developing integrated facilities in Mathura, Banthara (Unnao), Etah, Kurshi (Barabanki), Masoori Gulavthi (Ghaziabad), Baghpat, Ramnagar, Babrala (Badaun), Sandila (Hardoi), and Naini (Prayagraj) for the development of all necessary facilities for the development of small-scale industries.
The Indian government has granted approval for three more industrial estates in Paratapur (Meerut), Nunahai (Agra), and Shikohabad (Firozabad).
Cluster Development Scheme for Small and Medium Industries :
- Initiative : The Central Government introduced the Cluster Development Scheme in March 2006 to support small, medium, and micro-industries in enhancing their production capacity and quality.
- Funding Structure : Clusters under this scheme receive financial contributions from various sources, including the central government (70%), the state government (10%), and the Cluster SPV (Special Purpose Vehicle) (20%).
- Comprehensive Facilities : These clusters are equipped with all the necessary infrastructure and facilities related to their respective industries, fostering growth and development.
- Prominent Clusters : Here are some major clusters established under the Cluster Development Scheme :-
- Bulandari Cluster – Located in Jaunpur.
- Steel Cluster – Situated in Lucknow.
- Pan Engineering Cluster – Located in Varanasi.
- Silk Brocade Cluster – located in Varanasi.
- Jute Cluster – Found in Gazipur.
- Chicken Embroidery Cluster – Established in Barabanki.
- Textile Printing Cluster – Situated in Ghaziabad.
- Mint Cluster – Located in Badaun.
- Rice Cluster – Found in Bareilly.
- Screen Printing Cluster – Established in Farrukhabad.
- Wooden Cluster – Situated in Meerut.
- Carpet Cluster – Located in Shahjahanpur.
- Black Pottery Cluster – Found in Azamgarh.
- Power-loom Cluster – Established in Mau and Jhansi.
- Additionally, the Carpet Cluster in Bhadohi, Pottery Cluster in Khurja, and Ceramics Cluster in Meerut primarily cater to hard intervention.
- Dual Intervention : These clusters cater to both hard intervention (physical infrastructure) and soft intervention (capacity building and skill development) based on industry requirements.
A scheme called the “Dr. Ram Manohar Lohia State Small Industry Award Scheme” is being implemented for the successful and outstanding small entrepreneurs in the state.
With the aim of promoting the rapid development and competitiveness of small-scale industries, the Uttar Pradesh Small and Medium Industry Technology Upgradation Scheme has been in operation since January 2007.
Every year, the All India Handicrafts Week is celebrated from December 8th to December 15th.
Since December 13, 2017, the state government has been running the Chief Minister’s Handicrafts Pension Scheme.
To facilitate investment proposals for large, medium, and small industries, the state has been running the Nivesh Mitra Scheme since July 2009. This single-window system based on information technology significantly reduces the time required for entrepreneurs to submit investment proposals and obtain approvals. In the first phase, this scheme was initiated in 18 districts.
The establishment of District Industries Centres (DICs) began in 1978-79. At present, each district in the state has its own District Industries Centre. These centers provide land and other facilities for the establishment of small industries. In addition to this, District Industries Centers run various schemes to assist new entrepreneurs. These schemes include the Single Window System, Swarojgar Bandhu Yojana, and Udyog Bandhu Yojana, among others. The implementation of the Chief Minister and Prime Minister Employment Schemes is also being carried out through District Industries Centers.
‘One District – One Product’ scheme has been launched on 24 January 2018 on the occasion of Uttar Pradesh Day with the aim of promoting micro, medium and small industries and self-employment in the state.
One District One Product Policy of UP Government
Major industrial institutions
U.P. Industrial Cooperative Union (UPICA) – UPICA was established in 1952 to provide proper guidance to the primary weaver cooperative societies and industrial primary societies of the state in production and development work.
U.P. Financial Corporation (UPPC) – This corporation was established on 1 November 1954 in Kanpur to provide medium and long-term loans for the establishment of new small and medium industries and for the expansion and development of existing units. At present, the corporation has a total of 19 regional offices, of which 17 are in Uttar Pradesh.
On March 11, 2003, the State Government initiated the ‘Industrial Investment Promotion Scheme’ for mega industrial units and designated the Corporation (UPPC) as the nodal agency for the implementation of this scheme.
Pradeshiya Industrial & Investment Corporation of Uttar Pradesh Limited(PICUP) – This corporation was established in Lucknow in 1972 to expedite industrial development. The main objective of the corporation is to provide long-term loans to large and medium industries by functioning as an industrial development bank for the state’s industrial growth and to offer assistance in establishing large units in the joint sector and assisted sector. The present share capital of the corporation is Rs 150 crore, and the paid-up share capital is Rs 135.57 crore.
Uttar Pradesh State Industrial Development Corporation Ltd. (Kanpur) – Uttar Pradesh State Industrial Development Corporation Ltd. was established in March 1961 with the aim of advancing industrial development in the state. In 2018, it was merged into the Uttar Pradesh State Industrial Development Authority (UPSIDA).
Uttar Pradesh Small Industries Corporation Ltd. (Kanpur) – With the aim of meeting the needs and promoting the rapid development of small-scale industries in Uttar Pradesh, this corporation was established in 1958 by the state government as a wholly-owned company. To expand the Corporation’s services to every corner of the state, seven regional offices of the Corporation have been established in Kanpur, Lucknow, Prayagraj, Agra, Bareilly, and Ghaziabad, respectively.
Uttar Pradesh Trade Promotion Authority – This authority was established in 1994 under the State Industries Directorate to assist in marketing the products of the state’s industrial units through fairs, markets, publicity exhibitions, etc. Every year, the authority organises craft fairs, markets, and exhibitions at various locations.
Uttar Pradesh Export Corporation Limited (Lucknow) – Uttar Pradesh Export Corporation was established on 20 January 1966 as a public limited company. Its objective is the development and marketing of handicrafts and handloom items. This corporation conducts internal marketing through Gangotri showrooms and various exhibitions.
The Export Promotion Bureau, established by the Government of Uttar Pradesh in 1999, aims to promote exports from the state. Its primary objective is to facilitate effective export promotion by coordinating with government departments and assisting exporters with export procedures, while also collaborating with Export Promotion Councils, Agencies, Export Associations, and both State and Central Government bodies to provide various facilities and support.
State Leather Development and Marketing Corporation Ltd. (Agra) – This corporation was established on February 12, 1974, by the Government of Uttar Pradesh under the Companies Act of 1956. The main objectives of establishing the corporation are to make footwear manufactured using industrial and advanced methods available for sale, to explore new markets for the leather and footwear industry, provide marketing support to operational units, and facilitate suitable marketing for the products of cottage leather entrepreneurs while developing new models.
Current SituationAccording to advanced estimates for 2021-22:
Ease of doing business :
Industrial Reforms and Initiatives:
Various Schemes for Industrial Development:
Global Investors Summit:
Defence Industrial Corridor:
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