Uttar Pradesh Accelerates Investment Approvals, Processes Rs 2.37 Lakh Crore
In a significant boost to its industrial landscape, Uttar Pradesh has dramatically increased the pace of processing investor proposals and issuing Letters of Comfort (LoCs) during the financial year 2025–26. According to data from Invest UP, the state's nodal agency under the Infrastructure and Industrial Development Department, investment cases worth a staggering Rs 2.37 lakh crore have been cleared over the last three financial years.
Steep Growth in Investment Approvals
The detailed figures reveal a remarkable upward trajectory in both the number and value of sanctioned investments. Between FY 2023–24 and FY 2025–26, a total of 137 investment cases were approved, with an aggregate proposed investment of Rs 2,37,599.86 crore. This surge is attributed to enhanced institutional capacity, coordinated clearances, and the expansion of digital processing systems.
The Empowered Committee (EC), specifically constituted for LoC-related approvals, has seen a sharp rise in its workload, handling an increasing number of high-value cases. The year-wise breakdown illustrates this rapid scale-up:
- FY 2023–24: 10 cases processed, involving Rs 4,380.71 crore.
- FY 2024–25: 45 cases processed, with cumulative investments of Rs 43,099.41 crore.
- FY 2025–26 (so far): 42 cases processed, accounting for Rs 75,873.17 crore.
Pipeline of Future Investments
Invest UP has also highlighted a robust pipeline of future projects. Currently, 40 additional proposals at an advanced stage, worth Rs 1,14,246.57 crore, have been evaluated and forwarded to the competent committee for appraisal and approval. To date, the agency has issued 97 LoC/EC approvals, with a substantial portion cleared in the most recent year.
Letters of Comfort represent a sovereign commitment from the state government to provide incentives under specified schemes, contingent upon meeting eligibility and admissibility conditions. The faster LoC framework is designed to help investors transition from intent to execution more swiftly, thereby supporting industrial expansion and employment generation across the state.
Policy-Driven Investment Growth
The investment approvals are largely driven by key state policies. Under the UP Industrial Investment and Employment Promotion (IIEPP) Policy-2022, Invest UP sanctioned 85 proposals worth Rs 1.11 lakh crore, while recommending an additional 30 projects worth Rs 1.10 lakh crore for approval.
Similarly, under the UP FDI/FCI, Fortune Global 500 & Fortune India 500 Companies Investment Promotion Policy 2023, the agency processed 21 project proposals amounting to Rs 20,351.52 crore. Of these, 13 projects worth Rs 12,500 crore were sanctioned, and 8 projects worth Rs 7,800 crore were recommended for approval.
Regional Distribution of Investments
The approved LoCs show a diverse geographical spread, indicating balanced industrial development across Uttar Pradesh:
- Paschimanchal: Accounts for 32% of approved LoCs.
- Ghaziabad and Gautam Buddh Nagar: Together constitute 29% of LoC investments.
- Purvanchal: Represents 23% of the approvals.
- Madhyanchal: Makes up 15% of the total.
This regional distribution underscores the state's efforts to foster industrial activity beyond traditional hubs, promoting inclusive economic growth. The accelerated processing of investments positions Uttar Pradesh as a leading destination for business and industrial expansion in India.
