Uttar Pradesh Records Sharp Rise in Foreign Investment Inflows
Foreign direct investment into Uttar Pradesh has surged dramatically. The state attracted ₹5,963 crore during the first half of the current financial year. This figure represents a massive leap from the ₹550 crore received in the same period last year. Deepak Kumar, the Additional Chief Secretary and Infrastructure & Industrial Development Commissioner, confirmed the numbers.
Strategic Shift in Investment Destination
Deepak Kumar stated that Uttar Pradesh has moved decisively. The state is no longer a marginal recipient of foreign funds. It has transformed into a serious and organized destination for global capital. The sharp rise in FDI reflects growing investor confidence. This confidence stems from the state's robust policy framework, efficient land aggregation, and streamlined single-window systems.
The official emphasized that this surge is not a one-off event. It indicates a structural shift in the state's economic landscape. Uttar Pradesh's objective is clear. It aims to align itself with the central government's ambitious target of attracting $100 billion in foreign investment. The state is focusing on sustainable growth rather than chasing temporary headline rankings.
Electronics and Semiconductors Lead the Charge
The focus areas for attracting investments are high-growth sectors. Electronics and semiconductors top the list. The Noida-Greater Noida-Yamuna Expressway belt is emerging as a key hub for these industries. A major project is already underway. HCL Technologies, in partnership with Foxconn, is developing a ₹3,700-crore electronics manufacturing hub in this region.
Other sectors are also receiving attention. The state is actively pursuing investments in technical textiles and green hydrogen. Taiwanese firms are showing particular interest in the Kanpur area for sportswear and functional textiles. These projects are contributing significantly to the recent inflow of foreign capital.
Substantial Investment Pipeline and Support Systems
The state government has a clear roadmap for the coming years. It is tracking a strong pipeline of potential investments. Currently, there are 22 formal applications with a total proposed investment value of ₹17,810 crore. Additionally, the state is monitoring 29 more potential applicants. Their proposed investments amount to a staggering ₹56,347.30 crore.
To facilitate these investors, Uttar Pradesh has established dedicated support. It has created country desks for several nations including Japan, South Korea, Taiwan, Germany, France, Singapore, and Gulf countries. These desks provide end-to-end handholding for investors. The support ranges from site selection to post-investment assistance.
Policy Incentives and Infrastructure Push
Policy incentives have played a critical role in this transformation. The Uttar Pradesh FDI Policy 2023 offers substantial benefits to investors.
- Front-end land subsidies of 25% in western and central UP.
- Subsidies of 20% in Bundelkhand and Purvanchal regions.
- Capital subsidies of up to ₹100 crore in staggered instalments.
- Full exemption or reimbursement of stamp duty and registration charges.
- Waiver of electricity duty for five years.
- Refunds on eligible State GST investments.
The government has also launched Nivesh Mitra 3.0. This initiative aims to reduce documentation by about 50% and cut approval timelines by approximately 30%.
On the infrastructure front, the state is making significant strides. It has aggregated a massive 100,000-acre industrial land bank across various regions. Key projects include the Jewar Airport and its proposed aerotropolis, 27 manufacturing and logistics clusters along expressways, and the Bundelkhand Industrial Development Authority. Inland waterway connectivity on National Waterway-1 is also being developed to support large-scale investors.
Services Sector and Global Capability Centers
The services sector is strengthening Uttar Pradesh's investment appeal. Several Global Capability Centers are already operational in the state. These include major names like MetLife, InMobi, and Barclays. The government is actively tracking 83 more GCC leads. The estimated investment pipeline from these leads is around ₹5,000 crore.
Context and Comparative Performance
While Uttar Pradesh's growth is impressive, it still trails behind traditional investment powerhouses. In the first half of FY26, Maharashtra attracted ₹91,337 crore in FDI. Karnataka received ₹80,997 crore, Tamil Nadu ₹30,685 crore, Delhi ₹19,843 crore, and Gujarat ₹19,325 crore. Uttar Pradesh's cumulative FDI from 2000 to September 2025 stands at ₹22,279 crore.
Experts note that the sudden increase in FDI for a landlocked state like Uttar Pradesh is notable. Abhash Kumar, a trade economist, commented on the trend. He said it reflects growing investor confidence, improved law and order, and the state's significant potential for further growth.
Nationally, foreign investment into India rose about 20% to $50.4 billion during April-September 2025. This includes equity inflows of $35.2 billion. The central government has set an ambitious target of $100 billion in foreign investments for FY26.
Deepak Kumar summarized the state's focus. He said Uttar Pradesh is committed to sustained conversion of proposals into ground-level projects. The goal is to create capacity, generate jobs, and build confidence for repeat investments. This strategy, he believes, is how the state will close the gap with leading investment destinations over time.
