The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, has approved 13 key proposals, including a package of new incentives for semiconductor manufacturing units aimed at attracting large-scale investments to the state.
Under the Uttar Pradesh Semiconductor Policy 2024, the government will extend a range of financial and operational benefits to companies setting up semiconductor manufacturing facilities. Officials said the policy framework has been designed to position Uttar Pradesh as a preferred destination for high-end electronics and chip manufacturing.
As per the approved incentives, eligible semiconductor units will receive interest subsidies on loans, reimbursement of employee-related costs, and an exemption from net State Goods and Services Tax (SGST) for a period of 10 years. These measures are intended to lower project costs and encourage long-term investment in the capital-intensive semiconductor sector.
The Cabinet also cleared other proposals related to industrial development, infrastructure strengthening and governance reforms, reflecting the state’s broader strategy to boost manufacturing and employment generation.
An official familiar with the Cabinet decision said, “The incentives will make large semiconductor projects financially viable and create a strong ecosystem for advanced electronics manufacturing in Uttar Pradesh.”
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With the approvals in place, the state government is expected to begin outreach to domestic and global semiconductor companies, inviting proposals and facilitating faster clearances to accelerate project implementation.