UP Budget 2026: Yogi Adityanath's Vision to Transform Uttar Pradesh into a Job Generator
In a strategic move to address unemployment, the Uttar Pradesh government presented its 2026 budget in the Assembly on Wednesday, with a clear focus on generating jobs for the youth. Chief Minister Yogi Adityanath, at a post-budget press conference, highlighted the state's new role as an employment generator alongside being an investment destination. This budget signals a significant shift towards job-oriented economic growth, prioritizing industrial expansion, emerging technologies, skill development, and entrepreneurship.
Emphasis on Industrial and Digital Initiatives
Finance Minister Suresh Khanna, in his budget speech, underscored the importance of capital investment and infrastructure in strengthening the economy, while equally stressing the need to provide employment opportunities and equip youth with essential skills. To this end, the budget allocated Rs 550 crore for establishing Sardar Vallabhbhai Patel Employment and Industrial Zones across all 75 districts of the state. This initiative aims to create local employment and promote district-level investment, with an additional Rs 25 crore for initial implementation.
Linked to this scheme is the new One District, One Cuisine program, designed to boost local enterprise and market linkages. Furthermore, the government proposed a Rs 30 crore corpus to set up state-level U-Hubs in Lucknow and Gautam Buddha Nagar (Noida), strengthening the startup ecosystem and encouraging youth-led entrepreneurship.
Focus on Future Technologies and Skill Development
The budget reflects a strong emphasis on the digital economy and future technologies as key drivers of employment. A provision of Rs 225 crore has been made for the Uttar Pradesh AI Mission (UP-AIM), while Rs 100 crore is allocated for developing a Data Centre Cluster and Rs 10 crore for establishing a State Data Center Authority. To promote innovation in advanced sectors, Rs 70 crore on the revenue side and Rs 30 crore on the capital side have been earmarked for the New and Emerging Technologies Mission, covering robotics, photonics, quantum technology, and advanced manufacturing.
Additionally, Rs 100 crore has been provided under the Tech Yuva-Samarth Scheme to equip youth with industry-relevant digital skills. In the education and skill ecosystem, Rs 150 crore is allocated for setting up Dream Skill Lab Clusters in secondary schools to align vocational training with industry needs. The government also proposed Rs 50 crore for a Research and Development Innovation Fund in state universities to encourage high-quality research and innovation.
Skill Enhancement and Sector-Specific Allocations
Finance Minister Khanna noted that individuals with technical skills or trade proficiency are unlikely to remain unemployed. He announced that large-scale employment-oriented training and skill enhancement programs will be run in mission mode on a priority basis. Alongside formal education, arrangements will be made to strengthen the skill base of youth, enhance existing skill development training centers, and set up new centers across the state, with private sector participation ensured through public-private partnership (PPP) mode. Separate centers will be established for women to increase their workforce participation.
To support students, the budget proposed Rs 5 crore for constructing hostels for Uttar Pradesh students studying in the National Capital Region (NCR) and Rs 20 crore for women's hostels for those pursuing STEM courses in higher education institutions. For the handloom and textile sector, about Rs 541 crore has been proposed—more than five times the previous year's allocation—with a target of generating 30,000 jobs in 2026-27. Additionally, Rs 80 crore has been earmarked for sports colleges in 10 divisions to strengthen sports infrastructure and promote career opportunities in athletics.
This comprehensive budget approach aims to transform Uttar Pradesh into a hub of employment and innovation, leveraging digital advancements and skill development to drive economic growth and job creation for its youth.
