**Uttar Pradesh Emerges as a Key FDI Destination**
Uttar Pradesh has made significant strides in transforming itself from a minor player in foreign investment to a prominent and organized destination for foreign direct investment (FDI). Deepak Kumar, the additional chief secretary and infrastructure & industrial development commissioner of UP, highlighted this shift in a recent interview. He noted that the substantial increase in FDI during the first half of FY26 reflects growing confidence in the state’s policy framework, land aggregation efforts, and streamlined single-window systems.
In FY25, the state attracted ₹550 crore in FDI, as reported by Jitin Prasada, the minister of state for commerce and industry, in a written response to the Rajya Sabha in February 2025. Kumar emphasized that the recent surge in FDI indicates a structural change rather than a temporary spike. The state’s goal is to align with the Centre’s ambitious target of $100 billion in FDI, focusing on long-term strategies rather than merely chasing rankings.
Looking ahead, Uttar Pradesh has a projected investment pipeline consisting of 22 formal applications totaling ₹17,810 crore. Additionally, the state is monitoring 29 potential applicants with proposed investments of ₹56,347.30 crore. The focus is on attracting investments in high-growth sectors such as electronics, semiconductors, technical textiles, and green hydrogen, particularly along the Noida-Greater Noida-Yamuna Expressway corridor.
One notable project is the ₹3,700-crore electronics manufacturing hub being developed by HCL Technologies in collaboration with Foxconn, aimed at establishing a base for electronics and semiconductor manufacturing in the region. To facilitate investment, dedicated country desks have been established for Japan, South Korea, Taiwan, Germany, France, Singapore, and Gulf countries, providing comprehensive support from site selection to post-investment assistance.
Uttar Pradesh is also home to several global capability centers (GCCs) like MetLife, InMobi, and Barclays, which have bolstered the state’s service sector. The government is currently tracking 83 GCC leads with an estimated investment pipeline of around ₹5,000 crore. Recent investments in technical textiles, particularly from Taiwanese firms in Kanpur, have further contributed to the state’s FDI inflows, alongside logistics and manufacturing proposals linked to expressway corridors.
Despite these advancements, Uttar Pradesh still lags behind traditional investment hubs like Maharashtra and Karnataka. However, FDI inflows into the state rose to ₹3,700 crore in FY25, up from ₹2,762 crore in FY24, indicating a positive trend in attracting foreign investment.
**FAQ**
**What sectors is Uttar Pradesh focusing on for FDI?**
Uttar Pradesh is concentrating on high-growth sectors such as electronics, semiconductors, technical textiles, and green hydrogen to attract foreign direct investment.