The Uttar Pradesh government’s 2026 to 27 budget marked a sharp rise in spending on the information technology and electronics sector, with the allocation increased by 76 per cent to Rs 2,059 crore compared to the previous year. The enhanced outlay reflects the state’s growing emphasis on digital transformation, technology driven growth, and capacity building in emerging fields. A key highlight of the budget is the provision of Rs 225 crore for the Uttar Pradesh AI Mission, a new initiative aimed at accelerating adoption of artificial intelligence technologies and expanding the state’s innovation ecosystem.
Under the AI Mission, the government plans to establish artificial intelligence labs across 49 Industrial Training Institutes, alongside the creation of an AI Centre of Excellence and India AI Data Labs. These measures are intended to strengthen research capabilities, improve technical skill development, and prepare the workforce for future technology demands. The budget also recognises rising digital risks, allocating Rs 95.16 crore for setting up a Cyber Security Operations Centre. The proposed centre will function as a centralised facility for monitoring, threat detection, and protection of government digital systems.
Investment in data infrastructure forms another major component of the state’s technology strategy. Uttar Pradesh is targeting Rs 30,000 crore in investments to develop eight data centre parks with a combined capacity of 900 MW. Letters of comfort have already been issued for projects valued at over Rs 21,342 crore, representing 644 MW of capacity. The state already accounts for a substantial share of India’s electronics manufacturing, contributing significantly to mobile phone production and component units, while electronics exports have reached Rs 44,744 crore.
