In the Uttar Pradesh Budget 2026-27 presented on February 11 in Lucknow, the Yogi government has clearly indicated that the next decade will be of technology and digital economy. While presenting the budget in the Assembly, Finance Minister Suresh Khanna proposed an allocation of Rs 2,059 crore for the IT and electronics sector, which is about 76 percent more than the year 2025-26. This growth shows that the government is now giving equal priority to technology-based development along with the traditional development model.

Uttar Pradesh AI Mission launched

Artificial Intelligence has been given special priority in the budget.

• Provision of Rs 225 crore for Uttar Pradesh AI Mission.
• Under India AI Mission, AI labs will be established in 49 ITIs of the state.
• Provision of Rs 32.82 crore for establishment of AI Center of Excellence and India AI Data Labs.

The aim of the government is to connect the youth with future technology and create new employment opportunities. Under the AI ​​Pragya program already running under the leadership of the Chief Minister, companies like Microsoft, Google, Intel, IBM and One M One B are providing training. Farmers, self-help groups, students, doctors and government employees are being connected with the basic understanding and use of AI.

Strategic investment on cyber security

With digital expansion the fear 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 experts, this step is important to make digital governance and e-services secure.

UP towards becoming a data center hub

Uttar Pradesh is emerging rapidly in terms of data center investment.

• Aim to set up 8 data center parks with an estimated investment of Rs 30,000 crore.
• Plan to develop 900 MW capacity.
• So far, Letters of Comfort have been issued to 8 projects, which include 6 data center parks and 2 data center units.
• Investment of Rs 21,342 crore and 644 MW capacity acquired.

This investment in data storage and cloud infrastructure can give the state a strong base for digital services and startup ecosystem.

Advances in mobile manufacturing and electronics

According to government data, Uttar Pradesh has become the largest mobile phone manufacturing center in the country.

• About 65 percent of the total mobile production of the country is produced in the state.
• 55 percent of electronics component units located in UP.
• Electronics exports increased to Rs 44,744 crore.

This indicates that the impact of production-based incentives and industry-friendly policies is visible on the ground.

Rise in startup ranking

Due to policies promoting technology and innovation, Uttar Pradesh has got a leading position in the startup ranking at the national level. Experts are considering the increase of more than 76 percent in the IT and electronics sector in the budget as a decisive step.

This investment focused on IT, AI, data center and electronics manufacturing in UP Budget 2026-27 is a big sign towards establishing Uttar Pradesh as a major center of digital economy. However, the actual impact will depend on the speed of implementation and quality of skill development.