India’s success in the export of Information Technology (IT) Software and Related Services over the past decade has been acknowledged globally. India now accounts for 65 percent of the global market in IT off shoring and 46 percent of the ITES market. The growth of the sector has led to tremendous pay-offs in terms of wealth creation and generation of high quality employment. IT/ITeS industry has been one of the key driving forces fuelling India’s economic growth. As a proportion of national GDP, IT/ITeS sector’s contributions have risen from 1.2% in 1997-98 to an estimated 7.5% in 2011-12. As per NASSCOM estimates, IT/ITeS sector (excluding hardware) revenues are estimated at US$ 87.6 billion in FY 2011-12. The IT/ITeS industry is expected to grow by19% during FY 2012-13.

According to a recent study, the domestic IT Services and IT-enabled Services markets are expected to grow at a CAGR of 21.1% to touch Rs 98,188 Crores by 2014. IT Services alone is growing at 16.7% CAGR over 2010-2014, while domestic ITeS spending will grow at a CAGR of 30.2% over the same period.

The State Government intends to encourage investment in IT/ITeS industries and skill enhancement of the youth specializing in IT/ITeS and allied fields to improve their employability so that the citizens of Uttar Pradesh reap the benefits of development.

Lucknow is ranked among the TOP 10 cities among all the cities in India for fastest job-creation. It has also emerged as a “Science City”, and numerous national level laboratories, premier medical colleges, universities along with engineering and management institutes. Agra also has emerged as preferred investment location by leading industrial houses recently. It has stood apart as premier tourist destination with its world class infrastructure and proximity to IT hubs e.g. Noida and Gurgaon.

Uttar Pradesh has immense potential to emerge as one of the most economically developed states in India. Uttar Pradesh is currently focusing on developing necessary infrastructure, development of human capital, proactive engagement with investors and effective policy implementation so as to create a conducive ambience for IT industry. Uttar Pradesh government is encouraging and inviting private investments in knowledge based industries. The availability of numerous technical and manpower centers of excellence makes the state ideally suitable for setting up of IT industry.

State has large base of skilled manpower graduating from 700 professional institutions half of which imparting engineering and management courses both at graduate and postgraduate level, making it an ideal destination for knowledge-based sectors. Due to the Substantially lower costs of skilled manpower, facilities and infrastructure as compared to similar resources in other developed states of India, it is poised to become a challenger to other IT hubs.Under the Central Government scheme for promotion of exports two EPIPs are developed by UPSIDC on 200 acres at Gautam Budh Nagar and at Agra on 100 acres land, where high standard infrastructure facilities have been provided including cement concrete road, integrated security system, earth station etc.

This policy is aimed to reinforce the position of Uttar Pradesh as an attractive destination for the I.T industry by providing conducive business environment and policy instruments for industry to survive and flourish in the State. The state intends to promote Tier-II cities like Lucknow and Agra as next generation IT hubs which can facilitate a holistic development of Uttar Pradesh and its people.