Context:

Uttar Pradesh has steadily transformed into a major manufacturing hub, driven by robust infrastructure and proactive investment-friendly policies.

More on News:

  • The state is now a preferred destination for industr0ies like smartphone production, textiles, and auto components.
  • Uttar Pradesh’s manufacturing sector is considered a backbone of India’s economy.
  • Uttar Pradesh in Smartphone manufacturing:
    • UP leads India’s smartphone manufacturing, contributing 55% of the country’s smartphone production and 50% of mobile component manufacturing.
    • This positions UP significantly ahead of other states like Karnataka in smartphone production.
    • The state’s success is bolstered by 14 Special Economic Zones (SEZs) and three Electronics Manufacturing Clusters (EMCs).
    • EMCs facilitate business by offering ready access to factories and warehouses, simplifying establishment for enterprises in the state.
    • Vivo plans to invest over ₹7,000 crore in a major manufacturing plant in Greater Noida.
    • Global giants like Oppo and Samsung have also invested, contributing to a thriving economic ecosystem in Uttar Pradesh.
  • Uttar Pradesh in Textile:
    • Uttar Pradesh is a key hub for India’s textiles and apparel industry, contributing around 13% of the country’s fabric output ranking fourth.
    • Under the UP Textile & Garmenting Policy (2022), textile enterprises in Uttar Pradesh receive several key incentives:
      • 100% electricity duty exemption for 10 years25% subsidy on capital machinery100% stamp duty exemption
      These benefits have boosted the textile sector in the state, making it an attractive destination for businesses.In 2024 alone, 123 new textile companies began operations in Uttar Pradesh, bringing in a total investment of ₹2,492 crore. Uttar Pradesh is home to 12 textile parks that support MSMEs with shared facilities like design and training centres, while also generating employment.
    • The PM MITRA Mega Textile Park alone has created 1 lakh jobs, offering textile enterprises a dynamic ecosystem for growth and collaboration.
  •  Uttar Pradesh in Auto Components Segment:
  •  UP is also a key player in automotive and auto component manufacturing.
  • The EV Manufacturing & Mobility Policy 2022 targets ₹30,000–50,000 crore in investment and aims to generate over 1 million jobs.
  • It offers incentives such as 20–30% capital subsidy, 100% road tax waiver, and subsidies for charging stations.
    • UP has become a hub for major auto component players.
    • Automotive Manufacturers Pvt. Ltd. (AMPL) opened a new 3S facility in Varanasi, while Servotech Power Systems Ltd invested ₹300 crore in an EV charger manufacturing plant.
    • The government is boosting infrastructure by allocating ₹456 crore through Uttar Pradesh State Industrial Development Authority (UPSIDA) to upgrade civil and electrical facilities in 93 industrial areas.
    • 113 plots were allotted, attracting ₹700 crore in investments and expected to generate over 4,000 jobs.
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