In the UP Budget 2026-27, a provision of Rs 2059 crore has been made for the IT and electronics sector. The government is taking big steps towards making the state a digital economy and technology hub through AI mission, cyber security center and data center investment.
The economy of Uttar Pradesh is now moving beyond the traditional structure and taking a decisive step towards digital and technology based model. While presenting the budget for the financial year 2026-27, Finance Minister Suresh Khanna clearly indicated that the Yogi Adityanath government wants to make IT, electronics and artificial intelligence the new axis of development.
The government has proposed a provision of Rs 2059 crore for the IT and electronics sector, which is a significant increase of 76 percent compared to the previous financial year 2025-26. This part of the budget is not limited to mere figures, but is being considered as part of the long-term strategy to make the state a leading center of digital economy.
Special priority to AI, UP AI mission will start with Rs 225 crores
Keeping Artificial Intelligence at the center, “Uttar Pradesh AI Mission” has been announced in the budget. A provision of Rs 225 crore has been made for this mission.
Along with this, AI labs will be established in 49 ITIs of the state under India AI Mission. A provision of Rs 32.82 crore has been made for the establishment of AI Center of Excellence and India AI Data Labs.
Policy experts believe that establishment of AI lab at ITI level can give a new direction to the model of skill development. With this, technical education will be directly linked to the needs of the industry and the youth will get new employment opportunities.
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AI Pragya Program: Partnership with global companies
The state government has already started “AI Pragya Programme”. Global companies like Microsoft, Google, Intel, IBM and One M One B are providing training support in this initiative.
Under this program, AI based training is being given to farmers, self-help groups, students, doctors and government officials. The government’s aim is not to limit itself to the urban IT sector but to take technology to the village and grassroots level.
Provision of more than Rs 95 crore on cyber security
With digital expansion the risk of cyber threats also increases. Keeping this in mind, a new scheme of Rs 95.16 crore has been proposed for the establishment of Cyber Security Operation Centre.
According to administrative sources, this center will strengthen the security of government data and digital services. Experts are considering this as a strategic step towards securing the digital infrastructure.
Target of investment of Rs 30,000 crore in data center
Uttar Pradesh is also moving rapidly towards becoming a data center hub. A target has been set to establish 8 data center parks and develop 900 MW capacity in the state with an estimated investment of Rs 30,000 crore. So far, Letters of Comfort have been issued to 8 projects, which include 6 data center parks and 2 data center units. These projects have ensured an investment of approximately Rs 21,342 crore and 644 MW capacity. This move can establish Uttar Pradesh as a major hub of digital infrastructure at the national level.
UP number one in mobile manufacturing
Uttar Pradesh is already in a strong position in the field of electronics manufacturing. 65 percent of the total mobile phone production of the country is being produced in the state. Moreover, 55 percent of India’s electronics components units are located in Uttar Pradesh. The state’s electronics export has increased to Rs 44,744 crore. Industry experts say that the budget increase in the IT and electronics sector will further strengthen the confidence of investors.
Startup ecosystem got a boost
Due to technological innovation and industry friendly policies, Uttar Pradesh has got the status of leader in the national startup ranking. Experts are considering the budget increase of more than 76 percent as a decisive step to give new heights to the digital economy. He believes that if the schemes are implemented effectively, Uttar Pradesh can be included among the leading states of the country in technology-based development model. The budget for the financial year 2026-27 indicates that Uttar Pradesh does not want to be limited to industrial development only, but is preparing to become the center of the future economy through AI, data center, cyber security and electronics manufacturing.
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