Key Industries

The resources, policy incentives, infrastructure and climate in the state are ideally suited for investments in sectors such as IT, agro-based and food processing, light engineering goods, sports goods, textiles, leather-based, tourism and biotechnology.

The Uttar Pradesh State Industrial Development Corporation (UPSIDC) and the Department of Infrastructure and Industrial Development are responsible for the development of industrial infrastructure in the state.

The state government has set up Udyog Bandhu to facilitate investment in industrial and service sectors. The organisation has a three-tier structure with presence at district, divisional and state levels.

The government of Uttar Pradesh is promoting the development of several SEZs across the state, such as IT and ITeS, electronic hardware and software, handicrafts and agro-based industries.

Key industries in Uttar Pradesh

  • IT
  • Agro processing
  • Tourism
  • Mineral based industries
  • Textiles
  • Handloom and handicrafts
  • Food processing
  • Leather-based industry
  • Sports goods

Manufacturing

  • Industrial infrastructure (growth centres and industrial parks) an extensive railway and road network, availability of work force, and incentives offered by the state government are the major factors driving manufacturing industry in Uttar Pradesh.
  • The 12th Plan envisages an industrial growth rate of 11.2 per cent per annum and an investment of about US$ 58.5 billion.
  • Uttar Pradesh ranks third among Indian states in terms of the number of MSME enterprises.
  • Numerous manufacturing units have been set up in the industrial areas of Sahibabad and Noida, which enjoys the benefits of proximity to Delhi and an excellent transportation network connecting it with the rest of the country.
  • The state has attracted some of the major MNCs to set-up their manufacturing facilities.
  • PTC Industries has also submitted a proposal to invest US$ 36.8 million to set up a manufacturing unit in Lucknow.
Manufacturing

Consumer Goods

  • The key incentives for consumer goods companies to set up manufacturing unit in the state are access to large consumer markets and proximity to raw material sources.
  • Consumer goods companies with manufacturing facilities in the state are Dabur, ITC and Godfrey Phillips India.
  • The facilities in the state manufacture products under categories such as personal care, food, health care, cigarettes, apparel, and home care.
  • An apparel park at Tronica City, Ghaziabad, and a textile & hosiery park at Rooma, Dist., Kanpur, have been set up by UPSIDC to promote the apparel industry.

Electronics

  • Numerous major multinational companies, such as LG Electronics, Samsung and Xerox have their operations in the state.
  • The major incentives for the companies are industrial infrastructure and access to consumer markets of Uttar Pradesh and National Capital Region.
  • A majority of the companies are located in Noida and Ghaziabad.
  • UP Electronics Corporation Limited has been established to promote and develop the IT and electronics industries in the state.
  • Noida has become a hub for the semiconductor design industry with many major players having their offices and research & development (R&D) centres. Big companies like Samsung and Bosch have received the approval for setting up their semiconductor units in Noida.
  • Many companies are setting up operations in the state.
    • Global MNCs such as Freescale, Mentor Graphics and Interra Systems have set up operations in Noida.
    • Atrenta, a leading semiconductor company, relocated to an expanded R&D facility at Noida in May 2013.
    • De-Core Science and Technologies, a manufacturer of nano-opto-electronic devices, has plans to produce LEDs from India's first advanced semiconductor fab (AlInGaN facility) at Noida Special Economic Zone.

Petroleum, Chemicals and Fertilisers

  • Uttar Pradesh is one of the largest consumers of fertilisers in India, owing to its large size and agricultural activities.
  • The state accounts for nearly 6 per cent of the total chemicals produced in India.
  • Abundant availability of raw materials for production of fertilisers in Bundelkhand is an incentive for chemical companies to set up their plants.
  • Apart from fertilisers, many manufacturing units across the petroleum (Indian Oil), gas (GAIL), basic chemicals (Tata Chemicals) and paint (Kansai Nerolac) sectors are located in the state.
  • A refinery of Indian Oil Corporation is situated in Mathura, with a capacity of 8 million metric tonnes per annum (MMTPA).

Cement

  • Uttar Pradesh has nine large cement plants with an installed capacity of 9.33 million tonnes.
  • The state had limestone resources of 415.7 million tonnes, as of April 2010.
  • Abundance of raw material is an incentive for setting up cement plants. Existing players are establishing cement plants and increasing the capacity of existing plants.
  • Uttar Pradesh, being a large state, has a huge demand for cement. In 2012-13, total limestone production in the state was 3.3 million tonnes.
  • Uttar Pradesh is ranked as the seventh largest cement producing state in the country, with an annual production of 7.02 million tonnes in 2011-12.
  • In March 2014, Reliance Cement Ltd decided to expand its cement production business in the state. The company has a total cement manufacturing capacity of 5.5 million tonnes per annum through its other plants.

Petroleum, Chemicals and Fertilisers

  • Many original equipment manufacturers and auto component suppliers are located at Noida and Ghaziabad in Uttar Pradesh.
  • A large availability of talent pool provides abundant supply of workforce. Uttar Pradesh has around 320 engineering colleges, 425 polytechnics and 1,500 ITIs/ITCs, ensuring abundant supply of skilled personnel.
  • National Automotive Testing and R&D Infrastructure Project (NATRIP) also envisages the setting up of comprehensive testing and validation facilities, including field tracks for agricultural tractors, trailers, construction equipment and various other off-road vehicles, at Raebareli in northern India. This centre would house India`s first state-of-the-art road accident data analysis facility.

Sugar

  • Uttar Pradesh is the second-largest sugarcane producer in India, trailing only Maharashtra.
  • In 2012-13, 2.21 million hectares of area in the state was under sugarcane cultivation and total production was around 134.85 million tonnes.
  • The state accounted for 38.8 per cent of the country’s sugarcane production in 2012-13.
  • In 2009, DCM Shriram Consolidated Ltd along with International Finance Corporation started a pilot project Mitha Sona with 2000 farmers, which was able to increase the productivity by 25 per cent in the last three years. Impressed by the success, the project now comprises 80,000 farmers.
  • In 2012-13, total sugarcane crushed in the state was 79.3 million tonnes.
  • Sugarcane is produced in 44 districts of the state, and of these districts, 28 districts are major sugarcane producing districts. There are 124 operational sugar mills in the state.
  • Bajaj Hindusthan Limited, one of the largest sugar producers in the country, has its plants in Uttar Pradesh.

IT And ITes

  • The driving factors of IT and ITeS industry in the state are industrial infrastructure in areas such as Noida and Greater Noida, proximity to Delhi and talent pool.
  • There are eight operational SEZs across Noida and Greater Noida, of which five are primarily dedicated to IT/ITeS industries.
  • In the state, 23 SEZs have been notified for IT/ITeS industries.
  • In 2012-13, software exports from Uttar Pradesh by registered units through Software Technology Parks of India (STPI) totalled US$ 2.43 billion, accounting for 5.25 per cent of India’s IT exports.
  • The state government approved the IT Policy 2012 to catapult the state's IT exports.
  • An IT City is proposed to be built on about 100 acres of government land at Gajaria farms on Sultanpur Road in Lucknow.

Dairy

  • Uttar Pradesh is the largest milk-producing state, accounting for nearly 17.6 per cent of the total milk produced in the country in 2012–13.
  • During 2012-13, the state’s milk production was 23.3 million tonnes.
  • Milk production expanded at a CAGR of 4.3 per cent from 2003-04 to 2012-13.
  • The dairy industry in Uttar Pradesh is set to receive a boost after the inclusion of the state in the National Dairy Plan (NDP) of the National Dairy Development Board (NDDB). NDP is a World Bank-sponsored project that would cover eight states in the first phase.
  • NDP would help the state introduce scientific measures to increase milk production.
  • A budget of US$ 11.7* million was approved for the financial year 2013-14 under NDP.
Milk production

Tourism

  • Uttar Pradesh is one of the most favoured state in tourism as the Taj Mahal, one of the Seven Wonders of the World, is located in Agra.
  • Other prominent tourist and historical destinations are Varanasi, Piprahwa, Kaushambi, Shravasti, Kushi Nagar, Agra, Lucknow, Chitrakoot, Jhansi, Allahabad, Vrindavan and Meerut.
  • About 226.5 million domestic tourists (19.8 per cent of the country’s domestic tourists) and 2.1 million foreign tourists (10.3 per cent of total foreign tourists entering India) visited the state in 2013.
  • In 2012-13, the state was second and fourth in terms of domestic and foreign tourists, respectively.
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