Uttar Pradesh Unveils Ambitious Tech Push with 76% Budget Hike for IT and Electronics Sector
In a bold move to cement its position as a technology powerhouse, the Uttar Pradesh government has announced a significant increase in funding for the IT and electronics sector. Finance Minister Suresh Khanna presented the 2026–27 Budget, proposing an outlay of Rs 2,059 crore, marking a substantial 76% rise from previous allocations. This strategic enhancement underscores the state's commitment to fostering innovation and digital transformation.
Focus on Skilling and Digital Infrastructure
The Budget places a strong emphasis on developing human capital and bolstering digital infrastructure. Under the India AI Mission, the state plans to establish AI labs in 49 Industrial Training Institutes (ITIs) across Uttar Pradesh. Additionally, Rs 32.82 crore has been earmarked for setting up an AI Centre of Excellence and India AI Data Labs. These initiatives aim to equip the youth with advanced technological skills, thereby strengthening the state's innovation ecosystem and preparing a future-ready workforce.
Strengthening Cybersecurity Measures
To address the growing threat of digital attacks, the Budget proposes the creation of a new Cyber Security Operations Centre with an allocation of Rs 95.16 crore. Officials highlighted that this centre will enhance cyber resilience as digital services and e-governance platforms expand across Uttar Pradesh. This proactive step is crucial for safeguarding sensitive data and ensuring the reliability of online government services.
Investments in Data Center Parks
Uttar Pradesh is also making significant strides in the data center sector, targeting Rs 30,000 crore in investments to develop eight data centre parks with a total capacity of 900 MW. So far, eight projects—comprising six parks and two standalone units—have received letters of comfort, translating into investments of around Rs 21,342 crore and a capacity of 644 MW. This initiative positions the state as a key player in India's digital infrastructure landscape.
Dominance in Electronics Manufacturing
The state already holds a prominent position in India's electronics industry, accounting for 65% of the country's mobile phone manufacturing and 55% of electronics component units. Electronics exports have reached an impressive Rs 44,744 crore, reflecting Uttar Pradesh's robust industrial base. The enhanced budget allocation is viewed as a decisive step towards a technology-led growth model, aiming to further boost production and export capabilities.
Overall, this Budget signals Uttar Pradesh's aggressive push towards becoming a leader in technology and innovation, with comprehensive plans spanning AI, cybersecurity, and infrastructure development.
