UP’s Rs 5.3 Trillion Infra Push Aims to Create Global Tech Hubs

17 Dec 2024 CW Team

The Uttar Pradesh government has committed over Rs 5.31 trillion in infrastructure capital expenditure (capex) over the last five years, with a focus on improving freight movement and enhancing connectivity. This investment is set to fuel the state’s ambition to develop a robust network of global capability centres (GCCs) that will attract multinational corporations and drive economic growth. Key infrastructure projects such as the Ganga Expressway, Purvanchal Expressway, Bundelkhand Expressway, and Gorakhpur Link Expressway are part of this push, aligning with the PM GatiShakti scheme to streamline logistics and freight movement. The state government aims to leverage this infrastructure boom to establish GCCs—offshore centres that provide critical services like product development, AI, data analytics, and cybersecurity. “With its strategic location, young workforce, and growing infrastructure, UP is well-positioned to attract GCC investments,” said a senior government official. India is already a global leader in the GCC sector, projected to reach $110 billion by 2030, fueled by software exports. Uttar Pradesh plans to tap into this growth by focusing on infrastructure, skill development, and financial incentives to attract investments. The state has drafted the UP Global Capability Centres Policy 2024, which is currently under review and will soon be presented to the state cabinet. The policy offers investors attractive incentives, including land subsidies ranging from 30% in Gautam Buddha Nagar and Ghaziabad to 50% in Purvanchal and Bundelkhand regions. Uttar Pradesh is already home to a strong Electronics System Design and Manufacturing (ESDM) and IT sector, with over 350,000 professionals and nearly 200 companies, including global giants like Samsung, Oppo, Haier, NTT, and Microsoft. The state's focus on infrastructure and incentives positions it as a leading destination for downstream GCCs. (Business Standard)

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