Uttar Pradesh emerging as India’s next growth engine with AI, semicon & electronics sectors: Jitin Prasada

Uttar Pradesh is rapidly transforming into a leading state for artificial intelligence, semiconductors, electronics, technology, and innovation, positioning itself as the country’s next growth engine, according to Union Minister of State for Commerce and Industry Jitin Prasada.

Speaking at a session titled ‘UP’s Journey from Electronics Leader to AI and Semiconductor Powerhouse’ at the UP International Trade Show 2026 on Saturday, Prasada highlighted that the state is expanding its high-tech footprint beyond established manufacturing hubs.

“The day is not far when Uttar Pradesh will be prominently mentioned in discussions on investment in India and across the world. The government’s objective is to make Uttar Pradesh a major hub for technology, innovation, research and manufacturing, and the necessary ecosystem for this is being developed rapidly across the state,” he said.

Technology and trade represent two critical engines for the nation’s economic growth, with Uttar Pradesh well-positioned to achieve new milestones by leveraging both sectors, the minister said.

Prasada stated that state development efforts are no longer confined to Noida, with the government actively creating technology and electronics manufacturing opportunities across other regions of Uttar Pradesh to directly benefit local youth.

Major industrial investments by companies such as Samsung and Yotta, along with data centres, AI laboratories, and supporting infrastructure, reflect the state’s emerging technology ecosystem.

The government’s overarching strategy is to establish the entire electronics value chain locally, spanning IC design, semiconductor components, electronic assembly, and global exports.

Prasada asserted that India is moving away from basic product assembly toward core component manufacturing, supported by national initiatives like the Electronics Components Manufacturing Scheme, where Uttar Pradesh can play a pivotal role.

While India’s design talent is recognised globally, the next phase focuses on pairing that expertise with advanced manufacturing to take locally produced semiconductors and electronic products to domestic and international markets.

Addressing industry leaders, Prasada emphasised that while the government provides land, stable policies, and financial incentives, the long-term success of industrial units will ultimately depend on their own competitive capabilities.

“The government of Uttar Pradesh is working proactively and with good governance while understanding the needs of industry. It is essential to provide investors with a secure and stable policy environment so that they can take long-term decisions,” Prasada stated.

The minister urged enterprises to adopt artificial intelligence to boost productivity, operational efficiency, and cost competitiveness, noting that AI adoption among MSMEs represents the true benefit of technology.

Prasada concluded by calling for stronger collaboration between industry and academic research institutions, such as IIT Kanpur, to train local youth as AI innovators, researchers, and technical adopters.

Alok Kumar, principal secretary (IT and electronics), Uttar Pradesh, said that alongside the development of the electronics and semiconductor ecosystem in the state, particular focus is being placed on mobile manufacturing and Global Capability Centres (GCCs).

GCCs are already present in Noida, while some GCCs have also commenced operations in Lucknow.

Kumar stated that through the new GCC Policy and IT Policy, the objective is now to attract more GCCs not only to Noida but also to the Lucknow and Kanpur regions.

“Several IT and technology companies, including IBM, are already present in Lucknow. The state’s GCC and IT policies have been strengthened in line with those of other states, and IT and IT-enabled Services (ITeS) have already been granted industry status,” Kumar said.

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