Sector

IT & ITES

Quick Menu

INDIA SCENARIO

Widespread Vocational Education ecosystem with 3,000+ Industrial Training Institutes and 500+ Training Partners under UPSDM


UTTAR PRADESH SCENARIO

Uttar Pradesh is one of the largest states in India with GDP of more than USD 256 billion & has the largest consumer base in the country with around 240 million people. The Government of Uttar Pradesh has embarked on a journey to achieve a USD 1 trillion economy within the next 5 years, and IT & ITeS has been identified as a core sector to propelling the state's economy.

The IT sector has been contributing immensely to the state economy with the presence of companies such as Microsoft, TCS, PayTM, HCL, Wipro, MAQ, Adobe, Infosys and NXP Semiconductors, etc.

The Department of IT & Electronics offered business friendly ecosystem and competitive policy benefits through the UP IT, ITeS Policy 2022.

North India’s first hyper-scale Data Centre Yotta D1 was inaugurated in Greater Noida (Companies such as Yotta of the Hiranandani Group, STT, Adani, Sify Technologies, NTT Global and Webwerks mark the state as a favourable destination for data centres). Data Centers with capacity of 636 MW under development in the State.

Artificial Intelligence stands out as a key growth driver within the IT & ITeS sector. AI is not just a technology but a catalyst for economic prosperity. Uttar Pradesh acknowledges the pivotal role of AI in shaping the technological landscape within the state. Aligned with the vision of the Government of India, the Government of Uttar Pradesh aims to strengthen the AI innovation ecosystem within the state. Uttar Pradesh plans to build the country’s first AI city in Lucknow to house and promote the AI ecosystem. The AI City is envisioned to nurture and promote the AI ecosystem within the state and to develop the city as a new technology hub.

Online Incentives Management System (OIMS) has been created and integrated with the Nivesh Sarathi portal for project application approval and issuing of Letter of Comfort (LoC) under the UP IT and ITeS Policy 2022

  • World class educational institutions  (IIT Kanpur, IIT Varanasi, NIT Prayagraj, IIIT Prayagraj, IIIT Lucknow, and IIM Lucknow)
  • 4th largest Startup Ecosystem in the country
  • 63 Incubators and 8 Unicorns Startups
  • Abundance of skilled labour at 10-20% lower cost
  • Office space at 15-30% lower rental rates than other IT hubs
  • Recognized as a ‘leader’ in start-up space with 12000+ DPIIT recognized Startups
  • India’s largest international airport under-construction in Jewar
  • Presence of 300 STPI registered IT Units
  • IT & ITeS sector employed nearly 3.55 lakh people
  • 40+ Global Capability Centres in UP
  • Young demographic dividend : 56% of the total population is in the working age group (18-60 years)
  • A total of 8,077 Higher Education Institutes (2nd highest in India) including:
    • 72+ Universities
    • 6000 Colleges
  • Ed Tech Startups in Uttar Pradesh

DOMINANT INDUSTRY FORCES

KEY DEVELOPMENT IN THE INDUSTRY

Booming IT/ITeS sector with INR 72,000 Crores of exports from STPIs and SEZs

6 STPI Parks in Noida, Meerut, Lucknow, Kanpur, Prayagraj and Agra

3rd highest of NIRF ranked engineering colleges in the country, producing high quality IT Talent

4 upcoming STPI IT parks being developed in Varanasi, Bareilly, Panki (Kanpur) and Gorakhpur

POLICIES & SCHEMES

Policy Highlights

  • The policy is driven through dedicated Online Incentives Management System (OIMS) integrated with Nivesh Mitra Portal
  • Capital Subsidy @ 10% of FCI maximum up to INR 50 Cr. (For IT Units)
  • Operating Subsidy @ 10% up to INR 20 Cr./ Annum covering Lease rentals, Bandwidth Expenses, Data Center/ Cloud Service Cost and power charges for 5 years
  • 50% of the eligible R&D expenditure upto INR 5 Cr.
  • Land Subsidy @ 25% rebate up to INR 50 Cr
  • 100% Stamp Duty Exemption
  • 50% of the total CoE project cost up to INR 10 Cr.
  • Capital Subsidy @ 25% up to INR 20 Crores for IT Park
  • Capital Subsidy @ 25% up to INR 100 Crores for IT City
  • Skill Development Support @ 50% of the course fee in emerging technologies up to INR 50,000 per candidate
  • 50% of the eligible R&D expenditure upto INR 5 Cr.

KEY INVESTMENT OPPORTUNITIES

Investment Opportunities

  • Infrastructure development of IT Cities / IT Parks
  • IT/ITeS units
  • Center of Excellence (COE’s) for Emerging Technologies
  • R&D centers and Design center

Focus Cities

  • Software companies, GCCs being attracted by leveraging proximity to Delhi NCR
  • Robotic and Drones hotspot in Kanpur, leveraging Centre of Mechatronics, IIT Kanpur
  • ER&D hub by leveraging quality engineering talent from eminent institutions (IIT-BHU, MNIT, IIIT)
  • AI city, Lucknow proposed to be established to transform emerging Tier 2 city into next IT hub after Noida

Nivesh Sarathi Nivesh Mitra