IT & ITeS in Uttar Pradesh  |  Official Website of Invest UP, Government of Uttar Pradesh, India

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IT & ITeS in Uttar Pradesh

India’s Next-Scale Destination for Digital Services, GCCs and Data Centres

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KPI

  • India Digital Economy
    ₹31.64 Lakh Crore (US$402 Bn)
    11.74% of National Income (2022–23)
  • India Services Exports
    US$383.51 bn
    Financial Year 2024-25
  • India Software Services Exports
    US$204.7 Bn
    Exports in FY 2024–25
  • Uttar Pradesh GSDP
    ₹24.99 Trillion (US$300.01 Bn)
    Estimated for FY 2024–25
  • UP Proposed Data Centre Capacity
    644 MW
    Proposed Capacity as per Official Policy Statistics (June 2025)

INDIA SCENARIO

India’s digital economy is scaling rapidly and is now a major growth engine for the broader technology and services ecosystem. A MeitY-backed study estimates India’s digital economy at ₹31.64 lakh crore (about US$402 billion), or 11.74% of national income, in 2022-23, with the digital economy expected to approach one-fifth of GDP by 2030.

This expansion is creating sustained opportunities across software services, cloud, digital platforms, AI, enterprise technology, cybersecurity and digital business services.

India’s external demand environment remains supportive for the IT & ITeS sector. In FY2024-25, India’s total exports reached US$820.93 billion, while services exports rose to US$383.51 billion, up 12.45% year-on-year.

RBI’s annual survey further estimates India’s software services exports at US$204.7 billion in 2024-25, with computer services accounting for over two-thirds of total software services exports and ITES/BPO remaining the largest ITES component.

UTTAR PRADESH SCENARIO

Uttar Pradesh is one of India’s largest state economies, with a GSDP estimated at ₹24.99 trillion (US$300.01 billion) in 2024-25, and remains India’s largest consumer market among states with a population of over 200 million.

The state is positioning IT, ITeS, GCCs and data centres as strategic growth sectors within its broader economic and industrial development agenda.

Uttar Pradesh’s IT and digital-services ecosystem is supported by the presence of established industry players, proximity to Delhi NCR, a growing startup and innovation environment, and an expanding policy architecture for IT/ITeS, GCCs and data centres.

The state’s proposition is further strengthened by major academic institutions and a large annual talent pipeline across engineering, management and digital disciplines.

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

Uttar Pradesh has expanded its digital-sector policy stack beyond core IT/ITeS to include a dedicated GCC policy and a dedicated data-centre policy, reflecting a more mature and diversified technology-investment proposition.

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

  • Uttar Pradesh’s talent base is supported by major institutions including IIT Kanpur, IIT-BHU, NIT Prayagraj, IIIT Prayagraj/Allahabad, IIIT Lucknow and IIM Lucknow, which strengthen the state’s software, engineering, electronics, analytics and management talent pipeline.
  • 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
  • India's first-of-its kind AI City planned to be set up at a prime location in Lucknow.
  • 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

The state’s IT department highlights the expansion of STPI-linked and IT-park infrastructure across locations such as Noida, Meerut, Lucknow, Kanpur, Prayagraj and Agra, while continuing to support the growth of IT infrastructure in additional tier-II and tier-III cities.

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

Upcoming AI City in Lucknow to accelerate the state’s leadership in cutting edge technologies and advanced computing.

Uttar Pradesh has expanded its digital-sector policy stack beyond core IT/ITeS to include a dedicated GCC policy and a dedicated data-centre policy, reflecting a more mature and diversified technology-investment proposition.

Official state policy statistics show that Uttar Pradesh’s proposed data-centre capacity reached 644 MW with proposed investment of ₹21,342.90 crore as of June 2025, indicating strong traction beyond the original policy baseline.

The state has also institutionalized policy implementation and investor support through digital application and incentive-management systems integrated into its broader investment facilitation architecture.

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

  • Key investment opportunities in Uttar Pradesh include IT services and digital delivery centres, ITES / BPM / shared services, Global Capability Centres, data centres and cloud infrastructure, R&D and engineering support centres, and emerging technology-focused Centres of Excellence
  • The state’s proximity to Delhi NCR, large talent pool, cluster-led industrial growth and expanding policy support create opportunities across enterprise technology, digital platforms, advanced analytics, engineering services and back-office operations.
  • AI City in Lucknow to be developed by leveraging the state’s strong infrastructure, abundant talent pool, and strengthening industrial ecosystem.
 Nivesh Sarathi Nivesh Mitra