Introduction
Uttar Pradesh (UP) is the most populous state in India with a population of over 200 million. It is 
also the fourth largest state by area. UP is a major agricultural state and is also home to a number of industries, including textiles, electronics, and pharmaceuticals.
Issues
- Infrastructure: UP’s infrastructure is not as developed as some other states in India. This can make it difficult and expensive for businesses to operate in the state.
- Bureaucracy: UP has a reputation for being bureaucratic, which can make it difficult for businesses to get the necessary approvals and clearances.
- Law and order: UP has a history of law and order problems, which can be a concern for investors.
Despite these challenges, UP offers a number of advantages to investors. The state has a large and growing workforce, a favourable business environment, and a number of tax incentives for investors.
What are the benefits of investing in UP?
- Large and growing workforce: UP has a large and growing workforce, with over 100 million people in the working-age population.
- Favourable business environment: UP has implemented a number of reforms to make the state more business-friendly. These reforms include simplifying the regulatory environment and providing tax incentives to investors.
- Tax incentives: UP offers a number of tax incentives to investors, including exemption from value-added tax (VAT) on certain products and services.
What is the impact of investment in UP?
Investment in U P has had a number of positive impacts on the state. Investment has led to the creation of new jobs and the growth of existing businesses. Investment has also improved the state’s infrastructure and made it a more attractive destination for investors.
The following are some of the specific impacts of investment in U P:
- Job creation: Investment in UP has led to the creation of a large number of jobs. In 2022-23, over 1 million new jobs were created in the state.
- Business growth: Investment has helped to grow existing businesses in UP. For example, the state’s manufacturing sector has grown by over 10% in the past year.
- Infrastructure improvement: Investment has led to the improvement of UP’s infrastructure. For example, the state government has invested heavily in road construction and power generation.
- Investor attraction: UP has become a more attractive destination for investors in recent years. This is due to the state’s favourable business environment and a number of tax incentives for investors.
Overall, investment in UP has had a number of positive impacts on the state. Investment has led to job creation, business growth, infrastructure improvement, and investor attraction.
Favourable conditions
Uttar Pradesh boasts the second-longest road network in India.
It is the fourth largest Indian state by land area and has a population of approximately 200 million, equivalent to Brazil’s population.
Approximately 38% of Uttar Pradesh falls within the influence area of India’s dedicated freight corridors: Western Corridor (Delhi to Mumbai) and Eastern Corridor (Ludhiana to Kolkata).
The state received the largest allocation in the Union Budget 2023-24’s Rail Budget, totalling INR 17,507 crore.
Uttar Pradesh is home to various specialised business clusters, including sports items in Meerut, brassware in Moradabad, perfumes in Kannauj, leather in Kanpur, shoes in Agra, embroidered sarees in Varanasi, hand-knotted carpets in Bhadohi, and chikankari embroidery in Lucknow.
It’s a popular tourist destination with attractions like the Taj Mahal, Buddhist pilgrimage sites like Sarnath and Kushinagar, and Hindu pilgrimage places like Prayagraj and Varanasi. In 2022, it ranked second in domestic and seventh in foreign tourist arrivals.
Known as the “food basket of India,” Uttar Pradesh is a leading producer of various food items and contributes over 8% to the national manufacturing output.
The state is a major electronic hardware exporter and a key hub for IT/ITeS, including software, captive BPO, and R&D services.
Uttar Pradesh ranked sixth in the Export Preparedness Index 2021 and is recognized as an “Achiever” among landlocked states in Logistics Ease (LEADS 2022) by DPIIT.
The UP Global Investors Summit
The Uttar Pradesh Global Investors Summit (UPGIS) 2023, scheduled for February 10-12, 2023, in Lucknow, is a flagship event aimed at bringing together policymakers, corporate leaders, and global stakeholders to explore business opportunities and partnerships. Aligned with India’s vision of becoming a $5 trillion economy, Uttar Pradesh aims to reach $1 trillion in the next 5 years.
The government has implemented various policies to attract investment across sectors like Defence & Aerospace Manufacturing, EV Manufacturing, Warehousing & Logistics, Electronics Manufacturing, Tourism, Textiles, and MSMEs. UPGIS 2023 aims to bolster Uttar Pradesh’s appeal to investors and promote inclusive development.
The summit expects over 10,000 domestic and international delegates from 20+ countries, with a target of attracting investments worth INR 10 Lakh Crore. Preceding the event, roadshows are being held globally and within India to showcase the state’s investment potential. Several countries have committed to being partner countries.
UPGIS 2023 will feature knowledge sessions, B2B/G2G meetings, networking events, an innovation exhibition, cultural programs, and more. Additionally, the government has introduced an online system for signing MoUs and monitoring their implementation. This summit represents a significant step toward economic development and invites participation from all interested parties.
Focused sectors in UPGIS
- Food processing & Dairy
- Handloom & Textile
- IT
- Start-ups
- Tourism
- MSME
- Electronic Manufacturing
- Film
- Renewable Energy
- Pharmaceutical
- Logistics & Warehousing
- Electronic Vehicles & Manufacturing
- Defence & Aerospace
Investment is growing in Uttar Pradesh
In the fiscal year 2022-23, Uttar Pradesh (UP) has emerged as a prominent destination for new investments in India, according to a study by the Reserve Bank of India (RBI). Here are the key points related to UP’s investment attractiveness:
- UP attracted the highest share of new investments among Indian states, with a total project cost of Rs. 43,180 crore in the fiscal year 2022-23.
- The state’s investment proposals contributed significantly to the overall increase in investments in India, with the total capital outlay for projects in UP rising by 79.50%.
- UP, along with Gujarat, accounted for a substantial 57.2% of the total investment proposals made in the country during the same period.
- The state’s investment appeal is attributed to various factors, including efforts to improve the ease of doing business, its large and growing market, and its strategic location.
- Uttar Pradesh’s focus on attracting investments in sectors like infrastructure, including roads and bridges, has contributed to its success in attracting new projects.
- The study highlights that UP’s proactive approach to business-friendly policies, combined with its strategic advantages, has made it a top choice for investors.
- Overall, Uttar Pradesh’s robust investment climate and its efforts to facilitate economic growth have positioned it as a key player in India’s industrialisation landscape, attracting substantial investments and driving economic development.
Human Resources and Skill Development in UP
UP Government Schemes, Projects and Planned Development for welfare of People