Yogi govt’s new scheme allows businesses to invest in UP from 5 industrial hubs

If you run an IT business in Bengaluru and wish to invest in Uttar Pradesh, there’s no need to travel to the state anymore. Similarly, if a Mumbai-based financial services company plans to expand operations in Uttar Pradesh, all necessary facilities and information will be made available in Mumbai itself.

The new facilities are part of the Uttar Pradesh government’s new plan to boost investments in the state. Under the ‘Invest UP’ initiative, the government will enable entrepreneurs to invest or set up enterprises in Uttar Pradesh despite being based in other states. Five major Indian cities – Delhi, Mumbai, Chennai, Bengaluru, and Hyderabad – have been chosen for this initiative.

Each satellite office will focus on sectors relevant to its regional strengths. A tailored strategy will be followed for each location.

Invest UP offices in key industrial hubs

As part of the new initiative, the state’s Industrial Development Department will now have offices not only in Uttar Pradesh, but also across other states. In the first phase, Invest UP satellite investment promotion offices will be set up in Bengaluru, Hyderabad, Chennai, Mumbai, and New Delhi.

These offices will provide investors with all the necessary information and assistance to invest in Uttar Pradesh. The goal is to attract capital directly from India’s leading industrial centres to the state. The offices will also serve as key touchpoints to connect investors with Uttar Pradesh’s industrial policies and opportunities.

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CM Yogi gives green signal

Chief Minister Yogi Adityanath has already approved the Invest UP proposal prepared by the Industrial Development Department and cleared the plan to open its offices outside the state.

Each of the five new offices will have a general manager, an assistant general manager, two entrepreneur associates, two executives, and two office assistants. An annual expenditure of over ₹12 crore has been approved initially for these offices, with gradual expansion planned in the future.

Focus on regional strengths

As per the plan, each satellite office will focus on sectors relevant to its regional strengths. A tailored strategy will be followed for each location.

The Mumbai office will focus on financial services, infrastructure, fintech, and ESG funds.

The Bengaluru office will target GCC, aerospace, semiconductors, electric vehicles (EVs), and deep-tech sectors, with a strong emphasis on IT opportunities, particularly in Noida and other Uttar Pradesh tech hubs.

The Chennai office will work to attract investments in automotive, electronics, and hardware manufacturing.

The Hyderabad office will concentrate on pharmaceuticals, data centres, health tech, and enterprise solutions.

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The New Delhi office will focus on national and international outreach and serve as a facilitation centre for Asia-EU business engagement with Uttar Pradesh.

Stress on ease of doing business

Uttar Pradesh has already been holding Investors Summits to reach out to potential investors. However, the new satellite office strategy reverses the approach — instead of investors travelling to Uttar Pradesh, the state government will reach out to them.

With land availability being the biggest concern for investors, Invest UP will compile a comprehensive land bank database to facilitate industrial investments. But the state will need to ensure quick and transparent land allocation.

This move aligns with the government’s focus on ease of doing business. Officials from the Industrial Development Department have been visiting other states to engage with businesses, but having offices there will now help follow up on proposals more effectively.

Offices to ‘handhold’ investors

An official told The Federal Desh these offices will play a crucial role in “hand-holding” investors and building their confidence.

The satellite offices will act as a bridge between investors in other states and the Uttar Pradesh government. Industry expert and GST grievance cell member Manish Khemka noted that the government has strategically chosen states that are major industrial hubs — and therefore likely to generate the highest investment potential.

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“This plan is excellent because it allows entrepreneurs to access all basic information and prepare proposals within their own states. But the real test will be how effectively these offices perform,” he said.

Land availability major challenge

To achieve the $1-trillion economy target, Uttar Pradesh had launched its Investors Summit in 2018 to shed its “BIMARU state” tag and attract industrial investment. Several initiatives have been introduced to create a business-friendly environment, but challenges remain.

The biggest concern for investors continues to be land availability. Invest UP will compile a comprehensive land bank database to facilitate industrial investments, but the state will need to ensure quick and transparent land allocation.

Each industry requires land as per specific norms, and the government must provide this promptly to secure new investments.

In recent years, several projects have faced hurdles due to land acquisition issues and farmers’ protests, making land management for incoming proposals a major challenge.

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Another concern is ensuring facilities for projects already in the pipeline. The department has instructed district magistrates to create land banks of at least 50 acres in every district to meet future investment requirements.

(This article was originally published in The Federal Desh)