UP govt's infra push spurs Rs 5.3 trn capex, eyes global tech hubs

The Uttar Pradesh government has allocated over Rs 5.31 trillion in infrastructure capital expenditure (capex) over the past five years, reflecting a strong focus on enhancing freight movement and boosting connectivity. The state plans to channel this infrastructural push into fostering a robust network of global capability centres (GCCs) to attract multinational corporations and drive economic growth.  This investment is evident in mega projects like the Ganga Expressway, Purvanchal Expressway, Bundelkhand Expressway, and Gorakhpur Link Expressway. These projects are aimed at enhancing freight movement under the the PM GatiShakti scheme, a senior UP government official said.  Looking ahead, the Yogi Adityanath government aims to leverage this infrastructure development to build a robust network of GCCs. Such centres are fully-owned offshore entities that provide critical services to their parent organisations, including innovation in areas like product development, artificial intelligence (AI), data analytics, and cybersecurity.  “With its strategic location, young workforce, and rapidly developing infrastructure, UP is poised to benefit from the growth of GCCs,” the official added.  India is already a global leader in the GCC sector, with the domestic market projected to reach $110 billion by 2030, driven by software exports. By focusing on infrastructure development, skill enhancement, and financial incentives, Uttar Pradesh aims to position itself as a preferred hub for GCC investments.  The state government has drafted UP Global Capability Centres Policy 2024, which is under review and will soon be presented to the state cabinet for approval.  The proposed policy offers several incentives to investors, including differentiated land subsidies. These include a 30 per cent subsidy in Gautam Buddha Nagar and Ghaziabad districts, 40 per cent in Paschimanchal (Western UP) and Madhyanchal (Central UP) regions, and 50 per cent in Purvanchal (Eastern UP) and Bundelkhand regions.  With a strong presence in the ESDM (Electronics System Design and Manufacturing) and IT sectors—employing over 350,000 professionals and hosting nearly 200 companies—Uttar Pradesh is likely to attract downstream GCCs.  Global companies like Samsung, Oppo, Haier, NTT, STT Global, Web-Werks, HCL Technologies, TCS, Infosys, Wipro, Adobe, and Microsoft already operate in the state.