The Uttar Pradesh Cabinet has approved the First Amendment to the UP IT & ITeS Policy 2022, introducing a broader set of incentives aimed at attracting technology investments, supporting smaller companies and creating more employment opportunities across the state.
The amended policy seeks to make Uttar Pradesh a more competitive destination for IT and ITeS companies, startups, emerging technology businesses and large technology enterprises, while encouraging investment beyond the established hubs of Noida and Ghaziabad.
Easier Entry for IT and ITeS Companies
Under the amended policy, eligibility for incentives will no longer depend only on capital investment.
The framework will also consider factors such as employment generation and business capacity, potentially making it easier for a wider range of technology companies to qualify for policy benefits.
Higher Support for Smaller Companies
The amendment increases support for smaller IT companies, particularly those setting up outside Gautam Buddh Nagar and Ghaziabad.
The capital subsidy in these areas has been increased to 25% of Fixed Capital Investment (FCI), while the minimum investment threshold has been reduced to ₹2 crore.
OPEX support has also been enhanced, providing additional assistance to companies during their operating phase.
IT Cities and Parks to Expand Across UP
The revised policy also aims to encourage the development of IT infrastructure in more parts of the state.
The minimum land requirement for an IT City has been reduced to 20 acres. In addition, greenfield IT Parks can now be developed in every district, with lower minimum built-up area requirements.
The move is intended to distribute technology-led growth beyond the state’s existing IT centres.
Co-Working Spaces Get Incentives
For the first time, co-working spaces have been included as an incentivised category under the policy.
Developers can receive 25% capital expenditure support, up to ₹20 crore, for eligible projects. This is expected to make quality workspaces more accessible to startups and micro and small IT companies.
Major Investments Get Bigger Incentives
The amended policy also provides stronger incentives for large technology investments.
Projects involving investments of more than ₹500 crore can receive a 75% land rebate and capital subsidy of up to 40%, capped at ₹400 crore, subject to the prescribed approvals and conditions.
Greater Focus on Employment
Employment generation is a major component of the revised policy.
The amendment strengthens support measures such as:
- Payroll subsidy
- EPF reimbursement
- Recruitment assistance
- Internship support
- Skill-development assistance
- Relocation support for skilled professionals
These measures are aimed at helping companies build their workforce while creating more technology-related employment opportunities in the state.
Export-Oriented IT Companies to Get Support
The policy also introduces support for eligible IT units based on their annual export turnover.
The move is intended to encourage companies operating from Uttar Pradesh to expand their international business and strengthen the state’s position in the global IT and services market.
Building a Wider Technology Ecosystem
The latest amendment goes beyond increasing financial incentives. It aims to create a more accessible, geographically distributed and employment-focused technology ecosystem in Uttar Pradesh.
By combining investment incentives with infrastructure development, workforce support and export assistance, the state is seeking to attract businesses across different stages of growth—from startups and smaller technology firms to large global enterprises.
UP Targets the Next Phase of IT Growth
The revised policy is expected to support technology investment across established and emerging locations, including Noida, Lucknow, Kanpur and other districts.
With the First Amendment to the UP IT & ITeS Policy 2022, the state government is positioning technology as an important driver of investment, employment, innovation and economic growth across Uttar Pradesh.