Yogi Adityanath Outlines Uttar Pradesh’s Investment Strategy and Infrastructure Priorities
-2-800x400.webp?2026-09-28T11:41:08.963Z)
UP Chief Minister highlights consumer-market scale, connectivity and policy measures while seeking further central support for semiconductor, rail and power infrastructure
Uttar Pradesh Chief Minister Yogi Adityanath has outlined the state’s investment strategy, highlighting its large consumer market, expanding infrastructure and sector-specific policies while seeking additional support from the Centre for semiconductor manufacturing, dedicated rail-cargo connectivity and inter-state power transmission.
In an interview with businessline, Adityanath discussed the state’s efforts to attract domestic and foreign investment and reduce logistics costs for large industrial projects.
FDI and Emerging Investment Sectors
According to the Chief Minister, Uttar Pradesh received US$1.5 billion in foreign direct investment over the last three years, including the current fiscal year.
He said foreign capital is mainly entering sectors including electronics and mobile manufacturing, semiconductors, data centres, renewable energy, defence, logistics, electric vehicles and pharmaceuticals.
Adityanath also said that MoUs worth nearly ₹3 lakh crore were signed at Davos this year, while outreach in Japan and Singapore brought commitments of ₹2.5 lakh crore across data centres, clean energy, defence, logistics, EVs, pharmaceuticals and AI.
He noted that state-level FDI figures can understate investment taking place in Uttar Pradesh because the Department for Promotion of Industry and Internal Trade records FDI against the state where a company has its registered office. As a result, investments made by companies headquartered in Delhi or Mumbai but used to establish plants in Uttar Pradesh may appear in the investment figures of those states.
Investment Policies and Sectoral Incentives
Adityanath said Uttar Pradesh’s earlier investment-policy efforts focused on removing barriers, while the current approach is increasingly focused on identifying the industries the state wants to develop and the requirements of those industries.
The state has introduced a dedicated FDI and Fortune 500 Investment Promotion Policy covering Fortune Global 500 and Fortune India 500 companies, with a land-cost rebate of up to 75 per cent and capital subsidy, according to the Chief Minister.
For domestic industry, the state has strengthened employment-linked incentives, while its semiconductor policy supports the chip ecosystem developing around Jewar.
Uttar Pradesh currently lists policies covering sectors including semiconductors, data centres, electronics manufacturing, pharmaceuticals, logistics, textiles and garmenting, EVs, defence and aerospace, renewable energy and others on its official investment portal.
The Data Centre Policy 2026 targets more than ₹2 lakh crore in investment and additional capacity of more than 2 GW, with provisions covering AI-ready infrastructure, green data centres and Tier III and Tier IV facilities.
The state has also introduced the Startup Policy 2026, which includes a ₹1,000 crore UP Startup Fund, a ₹400 crore corpus fund, U-Hub and plans for 20 new Centres of Excellence.
Adityanath said the state amended its IT and ITeS policy in August so that eligibility considers employment and business capacity rather than capital investment alone.
Nivesh Mitra 3.0 and Ease of Doing Business
The Chief Minister also highlighted Nivesh Mitra 3.0, launched on March 24, as part of the state’s efforts to simplify interactions between investors and government departments.
The upgraded platform includes more than 530 services from 43 departments, along with features such as AI-powered assistance, real-time alerts, a combined application form and a GIS-enabled land bank. The platform has also introduced reductions in application fields, document requirements and procedural steps.
Focus on Lowering Logistics Costs
Adityanath said the state’s Logistics Policy targets a reduction in logistics costs from 13–14 per cent of GSDP to 8–9 per cent, which he described as the global benchmark.
The state is using its connectivity to national freight networks as part of this effort. The Eastern and Western Dedicated Freight Corridors provide rail connectivity for industrial freight, while the Western Dedicated Freight Corridor links the Dadri region with JNPT.
The state is also using National Waterway-1 and the Varanasi multimodal terminal for bulk and agricultural cargo. The Chief Minister said Noida International Airport, which began commercial flights in June, is also developing cargo capacity near electronics and pharmaceutical production centres.
Central Government Support and Future Requirements
Adityanath pointed to several central government initiatives that he said have contributed to industrial investment in the state.
The Uttar Pradesh Defence Industrial Corridor, announced at the state’s Investors Summit in 2018, has seen MoUs worth more than ₹35,000 crore, according to the Chief Minister.
He also cited the India Semiconductor Mission, under which the ₹3,706 crore HCL-Foxconn unit is being established in Jewar, with about ₹1,500 crore in central incentives, as stated in the interview.
The Chief Minister further said that the first payout under the production-linked incentive scheme went to a manufacturer in Noida and that PLI support has contributed to the growth of mobile-phone manufacturing in Uttar Pradesh.
For the next phase of investment, Adityanath said the state is seeking central support in three areas: establishing a commercial semiconductor fabrication unit in the Jewar region under the India Semiconductor Mission, developing dedicated rail-cargo links under PM Gati Shakti between expressway clusters and freight corridors, and securing funding for inter-state transmission infrastructure to connect solar power generated in Bundelkhand with the national grid.