Uttar Pradesh government seeks to increase IT sector's contribution to GSDP from $6.93bn to $74bn in 5 years

Lucknow (Uttar Pradesh) [India], November 9 : The plans of the Uttar Pradesh government headed by Chief Minister Yogi Adityanath to make the state a $1 trillion economy gained momentum after the state government set an ambitious target of increasing the contribution of Information Technology (IT) and Information Technology-Enabled Services (ITES) sector to the Gross State Domestic Product (GSDP) from $6.93bn to $74bn in the next five years.
The government has set a target to increase IT's share in GSDP from Rs 56,548.4 crore ($6.93 billion) to a whopping Rs 6,03,840 crore ($74 billion) in the next five years.
The Yogi Government is gearing up to bring a new IT and ITES Policy-2022, as part of its initiative to adopt department-wise strategies to achieve the larger goal of a $1 trillion economy, which is likely to be approved in the forthcoming Cabinet meeting.
Under the new policy, 4 IT cities, 18 IT parks and three Centers of Excellence will be developed in the state through private developers. In this context, the Government will invite major IT companies such as IBM, Exchanger and Tata Consultancy to the Global Investors Summit (GIS-2023) to be held in February, next year.
With this, the contribution of the IT and ITES sectors to the state's GSDP is expected to increase from 2.3 per cent to 7.4 per cent by 2027. At the same time, the growth rate is expected to increase from 23 per cent to 61 per cent, revealed a presentation made before the Chief Secretary recently.
IT cities will be set up in four districts of the state namely Paschimchal, Madhyaanchal, Purvanchal and Bundelkhand. These IT cities will be developed by private developers in an area of 100 acres. For this, the government will give a 25 per cent subsidy on capital investment, with a maximum limit of Rs 100 crore.
Similarly, IT Park will be developed on five acres with a 25 per cent subsidy to be given on the investment of Rs 20 crore. Besides, a 100 per cent rebate in stamp duty will be given on the purchase of land in both these schemes.
Furthermore, three Centres of Excellence will be set up to promote research, innovation and entrepreneurship in the IT and ITES sectors. Up to 50 per cent subsidy will be given on the total project cost following the installation of the centres with the maximum limit not exceeding Rs 10 crore.
Akshay Tripathi, Special Secretary of the IT and Electronics Department said, "We are going to make IT and ITeS the growth engine of the state's economy. For this, IT City, IT Park and Center of Excellence will be set up through private developers. With this, the IT graduates of the state will not have to go to any other state to find a job, as it would be available within the state."