Introduction:
In a bold stride toward positioning itself as a premier investment destination, the Government of Uttar Pradesh has unveiled a visionary policy — UP FDI/FCI, Fortune Global 500 & Fortune India 500 Companies’ Investment Promotion Policy 2023 (https://invest.up.gov.in/incentive-policy-2023/). This is a dedicated initiative aimed exclusively at incentivizing Foreign Capital Investment (FCI), as well as encouraging top global and national corporations from the Fortune Global 500 and Fortune India 500 lists to invest in the state.
Let’s dive into the highlights, eligibility criteria, and incentive structure that make this policy a potential game-changer for industrial growth in Uttar Pradesh.
Why UP
Uttar Pradesh is quickly positioning itself as one of India’s most dynamic and investor-friendly states. With the launch of its FDI/FCI, Fortune Global 500 & Fortune India 500 Companies Investment Promotion Policy 2023, Uttar Pradesh is making a bold statement on the global investment map. This pioneering initiative offers an array of well-structured incentives designed to attract foreign capital and Fortune 500 companies, making it an ideal destination for business expansion.
Uttar Pradesh offers numerous benefits for businesses, including substantial land subsidies in key regions, significantly lowering the cost of setting up operations. Investors can also take advantage of capital subsidies spread over multiple years, along with attractive tax relief measures. Additionally, the state provides rebates on capital goods and exempts electricity duties for a specified period, further enhancing cost-effectiveness. With further incentives aimed at workforce development, sustainability, and innovation, Uttar Pradesh is poised to become a prime choice for businesses seeking growth and profitability.
Who’s Eligible to Ride the UP Growth Wave?
Uttar Pradesh’s bold new policy is tailor-made for ambitious investors looking to scale big. Whether you’re a global powerhouse or an emerging titan in the Indian market, here’s who qualifies to get on board:
Are you a foreign investor looking to tap into India’s most populous and fastest-growing state? If your project brings in at least ₹100 crore in Foreign Capital Investment, you’re eligible. Even better — only 10% of this needs to be in equity; the rest can come through diverse debt instruments like debentures, ECBs (External Commercial Borrowings), or trade credit, all under RBI-approved modes. This means greater flexibility in how you fund your vision, without the constraints of rigid equity structures.
If your company features on the prestigious Fortune Global 500 or Fortune India 500 list and is planning to invest ₹100 crore or more, then welcome to UP’s exclusive club of high-impact investors.
The policy is designed to promote high-value, ethical, and sustainable sectors, ensuring your investment creates lasting impact.
Incentives That Speak Your Language: Profits
Uttar Pradesh’s incentive framework is built to maximize your profitability from Day 1. Here’s a closer look at the powerful support you’ll receive:
Imagine securing industrial land at a 25% subsidized rate in the developed zones of Paschimanchal and Madhyanchal, or at a 20% discount in the fast-emerging regions of Bundelkhand and Purvanchal.
That’s not all — for land acquired by Industrial Development Authorities (IDAs), the government reimburses 75%-80% of the subsidy, easing the process for both investors and facilitators.
If your project is on Gram Sabha land allocated to IDAs, you’ll pay just 50% of the acquisition cost. Now that’s a serious head start.
Planning major infrastructure investment? Uttar Pradesh’s got your back with substantial capital subsidies— up to ₹100 crore disbursed over seven years.
The rate varies based on location:
Subsidy Rates:
25% in the metro-strong Gautam Buddha Nagar & Ghaziabad
30% in other parts of Paschimanchal and Madhyanchal
35% in Bundelkhand and Purvanchal, to supercharge regional development
Note: Land cost is included in ECI if the project is not on IDA land.
Option 1: 100% Net SGST Reimbursement– Enjoy a full refund of your state GST for up to 10 years, capped at 10% of your capital investment annually. (Note: Any capital subsidy already received will be adjusted.)
This is ideal for companies with robust sales and regular tax outflows.
Option 2: Refund on Capital Goods – If you’re in a sector with an inverted tax structure, where input tax credit on capital goods is hard to use, the state will step in. You’ll get a refund on input SGST in five equal installments, starting from the day you go commercial — smoothing your cash flow from Day 1.
100% waiver on Stamp Duty and Registration Fees – Save big at setup.
100% electricity duty exemption for 5 years – Lower your operational costs significantly.
Skill Development Subsidy – Get ₹5,000 per month per employee, for up to 500 workers, and for five full years. Train and grow your team without draining your budget.
Green Industry Support – Going eco-friendly? Claim a 50% subsidy (up to ₹2.5 crore) for Effluent Treatment Plants and lead in sustainability.
Innovation at the Core: Research and Development (R&D) and CoE Support
Industrial Housing:
To ease workforce retention and wellbeing, the state supports housing infrastructure too. If you build homes for workers within 10 km of your site, you can claim 10% of the housing cost (up to ₹10 crore), spread over 7 years. This is how UP turns an industrial zone into a thriving ecosystem.
Logistics Subsidy:
Relocating your equipment and setting up a plant in UP? The state offers to cover 50% of your relocation costs, capped at ₹2 crore, especially for importing key manufacturing assets. Start strong, with less financial friction.
Patent Fees Reimbursement:
UP champions intellectual property. The government offers to reimburse 75% of your patent registration costs, with a cap of:
₹10 lakh for domestic patents
₹20 lakh for international patents
Now, you can innovate and safeguard your ideas without second thoughts about the legal bills.
Research and Development (R&D) and Innovation
For Standalone R&D Centres, get a 25% subsidy (up to ₹10 crore), paid in 3 phases — at approval, after 3 years, and once 5-year goals are met.
Want to set up a Centre of Excellence? Get 50% of the project cost covered, up to ₹10 crore. Think of it as a co-investment in your innovation journey.
Why This Policy Stands Out
This landmark policy doesn’t just offer financial incentives, it sends a strong message: Uttar Pradesh is ready to become India’s next big Global Investment Destination. With strategic incentives across infrastructure, taxation, skill development, and R&D, the state aims to cultivate an ecosystem conducive to large-scale industrialization and innovation.
Whether you are a multinational giant or a top Indian corporation, this policy lays a robust foundation to turn Uttar Pradesh into a hub of high-value, high-tech, and sustainable investments.
Final Words
With the launch of the UP’s FDI/FCI, Fortune Global 500 & Fortune India 500 Companies Investment Promotion Policy 2023, Uttar Pradesh has not just opened its doors to global investment — it has laid out a bold new blueprint for industrial transformation. By combining world-class incentives with a future-focused vision, the state is positioning itself as a powerhouse of opportunity, innovation, and growth.
For global and domestic giants, this isn’t just another policy, it’s an open invitation to be part of India’s next big growth story, right from the heart of Uttar Pradesh.
To know more about other sector policies click (https://invest.up.gov.in/policies/)
To know more about Invest UP click (https://invest.up.gov.in/)
Uttar Pradesh is no longer just a destination for investors—it is a decisive opportunity.
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