As part of its broader ambition to become a $1 trillion economy, the Uttar Pradesh government has announced a fresh set of incentives to attract foreign direct investment into Global Capability Centres (GCCs) and semiconductor manufacturing facilities. The measures, approved by the state cabinet, are designed to position Uttar Pradesh as a competitive destination for high-value technology investments, particularly in the fast-growing semiconductor sector and global enterprise services.
Under the updated Uttar Pradesh Semiconductor Policy 2024, projects with proposed investments of ₹3,000 crore or more will be eligible for enhanced state support. The policy offers a combination of fiscal and operational incentives aimed at lowering entry barriers for large-scale manufacturing units.
Semiconductor projects will be entitled to interest subsidies, reimbursement of employee-related expenses, and a 10-year exemption from state goods and services tax (SGST). Additional benefits include concessions on water charges, electricity tariff subsidies of ₹2 per unit for a decade, and full reimbursement of Employees’ Provident Fund (EPF) contributions for Uttar Pradesh–domiciled workers, subject to a monthly cap.
Finance and Parliamentary Affairs Minister Suresh Khanna said the initiative reflects the state’s intent to align with global shifts in semiconductor manufacturing and build a sustainable electronics ecosystem. Beyond investment inflows, the policy is expected to generate skilled employment and strengthen the state’s technology base.
Alongside semiconductor incentives, the government has also approved Standard Operating Procedures (SOP) 2025 to operationalise the Uttar Pradesh Global Capability Centres Policy 2024. The GCC policy targets multinational companies looking to set up centres for IT services, research and development, engineering, finance, analytics, human resources, and knowledge-based operations. To support these investments, the state is offering a wide range of incentives, including land and stamp duty concessions, capital and interest subsidies, operational expenditure support, payroll-linked incentives, EPF reimbursement, and assistance for skill development.
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Industry stakeholders view the combined policy framework as a strong signal of Uttar Pradesh’s intent to emerge as a hub for advanced manufacturing and global business services. With a growing talent pool, improving infrastructure, and policy-backed cost advantages, the state is aiming to attract long-term, high-value investments across technology-driven sectors.
