Uttar Pradesh targets Technology Hub Status with AI and Semiconductor push

Union Minister Jitin Prasada says the state is emerging as India’s next growth engine, with investments in electronics, AI, semiconductors and technology expanding beyond Noida

Uttar Pradesh is positioning itself to become one of India’s leading technology and manufacturing hubs, with the state expanding its focus beyond electronics manufacturing to artificial intelligence (AI), semiconductors, innovation and advanced technology.

Union Minister of State for Commerce and Industry Jitin Prasada outlined this vision while addressing a session titled ‘UP’s Journey from Electronics Leader to AI and Semiconductor Powerhouse’.

Prasada said the state is moving towards becoming a major hub for technology, innovation, research and manufacturing, supported by the development of the necessary ecosystem across Uttar Pradesh.

“The day is not far when Uttar Pradesh will be prominently mentioned in discussions on investment in India and across the world,” Prasada said.

He attributed the ongoing transformation to the coordination between the Centre and state governments, saying the “double-engine government” under Prime Minister Narendra Modi and Chief Minister Yogi Adityanath is accelerating development in the state.

According to Prasada, technology and trade will remain important drivers of India’s growth, and Uttar Pradesh can leverage both to strengthen its economic position.

Technology Investments Expand Beyond Noida

Prasada said the state’s technology push is no longer limited to concentrating investments in Noida. The government is seeking to create opportunities for electronics and technology companies across other parts of Uttar Pradesh, which he said could generate greater opportunities for the state’s youth.

He pointed to investments involving companies such as Samsung and Yotta, along with the development of data centres, AI laboratories and other technology infrastructure, as signs of an emerging technology ecosystem.

The broader objective, he said, is to establish an integrated value chain covering design, semiconductor components, electronics manufacturing and exports.

UP Could Play Role in India’s Semiconductor Push

Prasada also highlighted the shift in India’s electronics strategy from product assembly towards component manufacturing.

He said initiatives such as the Electronics Components Manufacturing Scheme could support this transition, with Uttar Pradesh positioned to play an important role.

“India’s design capabilities and talent are already recognised globally. The next step is to complement this strength with manufacturing capability,” Prasada said.

He added that manufacturing semiconductors and electronic products in Uttar Pradesh and taking them to both domestic and international markets would be an important part of the state’s technology ambitions.

Government Support and Industry Competitiveness

Prasada said government incentives and subsidies should be viewed as tools to accelerate industrial growth rather than as a substitute for competitiveness.

While governments can provide land, policies, approvals and infrastructure, he said companies would ultimately need to build competitive and self-sustaining businesses.

“The Government of Uttar Pradesh is working proactively and with good governance while understanding the needs of industry,” Prasada said, emphasising the importance of a secure and stable policy environment for investors making long-term decisions.

AI to Focus on Productivity and Efficiency

The Union Minister also called for AI adoption to be linked to measurable improvements in productivity, efficiency and cost competitiveness.

He said the real value of AI would be demonstrated when businesses, particularly MSMEs, can use the technology to reduce costs or improve productivity.

Prasada also stressed the importance of preparing young people to become AI innovators, researchers and adopters, while calling for stronger collaboration between research institutions and industry.

He specifically highlighted the role of institutions such as IIT Kanpur in strengthening industry-research partnerships.

UP Looks to Build Future Technology Workforce

Prasada described the current period as an important opportunity for Uttar Pradesh and said planning for the coming years needs to begin now to ensure that the state’s younger generation benefits from the emerging technology and manufacturing ecosystem.

He said the broader objective is to establish Uttar Pradesh as one of India’s leading technology and manufacturing powerhouses.

GCC Expansion to Extend Beyond Noida

Alok Kumar, Principal Secretary, IT and Electronics, Uttar Pradesh, said the state is also focusing on expanding mobile manufacturing and Global Capability Centres (GCCs) alongside the development of its electronics and semiconductor ecosystem.

GCCs are already established in Noida, while some have also begun operations in Lucknow.

Under the state’s new GCC Policy and IT Policy, the government is seeking to attract more GCCs to Lucknow and Kanpur, in addition to Noida.

Kumar noted that several IT and technology companies, including IBM, already have a presence in Lucknow.

He added that Uttar Pradesh’s GCC and IT policies have been strengthened in line with those of other states, while IT and IT-enabled Services (ITeS) have already been granted industry status.