Uttar Pradesh is quickly moving to boost its factories and businesses right now. New rules are in place. top groups of people are meeting to make sure companies want to set up shop here. This big push aims to bring more work and money into the state, making it a key place for business in the country. The fresh steps are designed to cut down on problems and help factories grow faster than before, promising more jobs for many people and changing how the state’s money system works.
New Steps for Industry Growth
The state government has put in place new rules and gathered essential groups to speed up industrial growth. These actions are part of a bigger plan to make the state a major economic power. The main goal is to create more jobs and bring in more money from businesses, both from inside the country and from other countries. The government’s push for industry is seeing good results.
One major new rule is the Uttar Pradesh Industrial Investment and Employment Promotion Policy from 2022. This policy offers many benefits to businesses that put money into the state. These benefits include not having to pay stamp duty on land, which can be as much as 100% in areas like Bundelkhand and Poorvanchal. It is 75% in Madhyanchal and Paschimanchal. 50% in Gautam Buddh Nagar and Ghaziabad districts. The policy also helps with a part of the capital money invested and gives back some of the state goods and services tax (SGST) that businesses pay. Companies can also get extra help if they are part of the central government’s Production Linked Incentives (PLI) Scheme.
The state has sorted investments into different groups based on how much money is put in. These groups are called Large, Mega, Super Mega. Ultra-Mega. This helps in giving the right kind of support to each business. The government also gives special help for building private industrial parks and for crucial research and development centers.
Making Business Easy
A big part of the new effort is to make it much simpler to start and run a business. The state has worked hard to cut down on old rules and make processes clear. This has led to Uttar Pradesh being called an “Achievers State” because it has put into practice all the essential changes suggested by a national body that works on making business easier.
The state has changed more than 4,600 rules that affected businesses and people. It has also removed jail time for 577 minor mistakes in laws. This means that for small rule breaking, people will now pay a fine instead of going to jail. This step is meant to create a friendlier atmosphere for businesses.
To help businesses get quick approvals, a special online system called ‘Nivesh Mitra’ is being used. This system has solved over 3,000 requests from businesses in the current financial year (2025-26), with a high satisfaction rate of 96. 3 percent from business owners. More than 524 services related to business have been added to this online system, making things faster and more open.
Helping Small Businesses Grow
The state government has approved a new rule called the Micro, Small. Medium Enterprises (MSME) Industrial Estate Management Policy of 2025. This new rule takes the place of 19 old government orders that were in use since 1978. Its aim is to make it easy to get land, provide better facilities. manage industrial areas well.
Under this new policy, land, factory sheds. plots in industrial areas will be given out through public sales, either in person or online. A special part of this rule is that 10% of all plots and sheds are set aside for business owners from Scheduled Castes and Scheduled Tribes.
The policy also sets clear prices for industrial plots in different parts of the state for the financial year 2025-26. These prices will go up by 5% every year starting from April 1. For big companies that are expected to bring a lot of other smaller businesses to an industrial area, the government might offer land at lower, special prices.
The industrial areas will also have essential facilities such as common centers for various needs, power stations, fire stations, places to stay for women workers, dormitories, childcare centers, green parks, training schools. health services.
Special Focus Areas
The state is focusing on several key areas to boost its economy. These include farming and food processing, making auto parts, civil aviation, dairy products, defense and airplane parts, electronics and technology, electric vehicle making, film industry, handloom and textile, IT-related services, small and medium businesses, medicines, clean energy. tourism.
There are specific rules and benefits for these sectors. For example, the Uttar Pradesh Solar Energy Policy of 2022 aims to make the state a leader in clean energy. The Uttar Pradesh Electronics Manufacturing Policy and the IT and ITeS Policy of 2022 are also in place to bring in more money and create jobs in these fast-growing fields.
Projects like the Defense Industrial Corridor and setting up places to make computer chips near the upcoming Jewar Airport show the state’s plan to grow beyond older industries. These new projects are vital because high-tech industries have not been as strong in this northern part of the country before.
Improving Land and Building Rules
To solve problems with giving out land for factories and making building rules simpler, the state government has set up three high-level committees. These committees will work to make sure enough land is available for factories, set fair land prices. simplify building laws to bring in more investment.
The first committee will look at how to approve plans for buildings or plots that are outside the official industrial areas. It will study what other states do and suggest ways to open up these areas for businesses. This committee is led by a top officer from the planning department.
The second committee will check land prices for industries. Business groups have asked the state to make these prices similar to those in nearby states, like Madhya Pradesh, where they might be lower. This committee will also look at the quality of infrastructure and suggest ways to lower the cost of doing business. It is led by a top officer from the Infrastructure and Industrial Development Department.
The third committee will focus on making complex building rules easier to comprehend and follow. Its goal is to help businesses set up factories even on smaller pieces of land. This committee, led by a top officer from the revenue department, will also review rules from other states before making its suggestions.
All three committees are expected to give their suggestions within two weeks from when they were formed.
In a related effort, a group of elected members from 20 industrial centers in the state has formed ‘Friends of MSMEs In UP Assembly’. This group aims to use its power in the law-making body to help small and medium businesses solve their problems and grow.
Voice of Business Leaders
Business leaders and experts have noted the positive changes. They see the state’s focus on transparency, digital services. quick approvals as key to improving the business environment. The use of online systems like Nivesh Mitra has been praised for making processes faster and clearer for investors.
Officials from the state have said that these changes are creating a better atmosphere for businesses, leading to more money coming into the state and more jobs being created.
Looking at the Numbers
Uttar Pradesh is the state with the most people and has the second-largest economy in India. It aims to grow its economy to one trillion dollars by the year 2029.
Figures from the Uttar Pradesh State Industrial Development Authority (UPSIDA) show clear growth. The amount of industrial land given out increased from 114 acres in 2017-18 to 526 acres in 2024-25. Money spent on building infrastructure also went up a lot, from 57 crore rupees in 2017-18 to 551 crore rupees in 2024-25.
The number of factories working in the state also shows this growth. From 403 working units in 2020-21, more than 666 new units started working in just the first three months of the financial year 2025-26. In the last financial year, 1,418 units began operations. This growth is helping create many jobs, both directly and indirectly.
The total industrial output in the state is expected to rise from 510. 8 lakh metric tonnes in 2020-21 to 722 lakh metric tonnes in the financial year 2024-25. Small and medium businesses are expected to contribute a large part of this growth.
| Indicator | 2017-18 | 2020-21 | 2024-25 | Q1 FY 2025-26 |
|---|---|---|---|---|
| Industrial Land Allotment (Acres) | 114 | – | 526 | – |
| Infrastructure Spending (₹ Crore) | 57 | – | 551 | 225 (in progress) |
| Operational Industrial Units | – | 403 | 1418 (FY 2024-25) | 666+ (new units) |
