Uttar Pradesh’s IT and ITeS sector is set for a major boost in 2025, with a new scheme granting industry status to drive growth. Job opportunities are projected to surge by 20%, fueled by AI, cybersecurity, and cloud computing. The state aims to become India’s top IT hub, with major players like Wipro and TCS collaborating to create a robust tech ecosystem.
Uttar Pradesh’s IT Boom: New Scheme Fuels Tech Growth
Uttar Pradesh is rapidly emerging as India’s next IT powerhouse, with the state government’s recent decision to grant industry status to the IT and ITeS sector, a move aimed at slashing operational costs by up to 20% and unlocking vast land banks for investment in tier-2 and tier-3 cities. Announced in October 2024, this policy shift has set the stage for a projected 20% surge in job opportunities in 2025, according to the Instahyre Tech Salary Index 2025. The report highlights a booming demand for roles in artificial intelligence (AI), cybersecurity, and cloud computing, with these segments expected to see a remarkable 75% growth in hiring.
The state’s IT and ITeS exports have already shown impressive growth, rising from ₹3,825 crore in FY 2004-05 to ₹22,118 crore in FY 2019-20, a 578% increase over 15 years, as per data from Software Technology Parks of India (STPI). This upward trajectory continued, with exports reaching ₹21,264.56 crore in FY 2020-21. The new scheme, coupled with initiatives like the Next Generation Incubation Scheme (NGIS), is expected to further accelerate this momentum. STPI has already provided ₹30.87 crore in seed capital to 136 startups and incentivized 359 others with ₹3.57 crore in stipends, fostering innovation across the state.
Major IT giants such as Wipro, TCS, and Microsoft are collaborating with institutions like IIT Kanpur and IIM Lucknow to craft a roadmap to position Uttar Pradesh as India’s leading IT hub. This aligns with Chief Minister Yogi Adityanath’s vision of transforming UP into a $1 trillion economy. The state’s focus on digital transformation and e-governance, with 37 types of services now available online, is creating a simplified, transparent investment ecosystem. Cities like Noida, Lucknow, and Kanpur are becoming key hubs, with tier-2 cities like Varanasi and Gorakhpur also witnessing increased IT activity.
The flexi-workforce in the IT and ITeS sector is projected to reach 9 lakh professionals by 2030, growing at a 15% compound annual growth rate (CAGR), according to Careernet’s report. Currently, the sector employs 3.9 lakh flexi-workers, accounting for 7% of the 5.8 million professionals in India’s IT and ITeS industry. Bengaluru leads in flexi-hiring at 25%, but UP’s tier-2 and tier-3 cities are catching up, contributing 20% to the flexi-workforce.
The state’s proactive policies, such as the Production Linked Incentive (PLI) scheme, are driving investment in electronics and IT hardware manufacturing. In 2025, UP plans to launch a ₹10,000 crore incentive scheme to promote electronic components manufacturing, further solidifying its position in the electronics sector. This comes as India’s domestic IT and business services market reached $16.5 billion in 2024, growing 6.9% year-on-year, according to the International Data Corporation (IDC).
Despite global uncertainties, including US tariff disputes and geopolitical tensions, UP’s IT sector remains resilient. The India-UK Free Trade Agreement (FTA) is expected to enhance workforce mobility, providing new opportunities for UP’s tech professionals. However, challenges remain, including the need for increased private-sector R&D investment, currently at 0.7% of GDP, and upskilling nearly 40% of the workforce to meet the demands of emerging technologies like AI and quantum computing.
Disclaimer: This article is based on reports and data from sources including the Instahyre Tech Salary Index 2025, Software Technology Parks of India (STPI), Careernet, and the International Data Corporation (IDC). Information reflects the latest available data as of July 2, 2025, and is subject to change based on evolving economic and policy developments.