Official estimates suggest that advanced technologies such as the AI (artificial intelligence) is expected to make a substantial contribution to the Indian economy by 2030, fostering advancements in various industries, creating new job opportunities and fuelling the overall economic ecosystem of the country. Uttar Pradesh, which has embarked on a journey to achieve a $1 trillion economy within the next 5 years, is betting big on AI to step up growth across various sectors and ensure better transparency and governance.
The AI market in India, which stood at $3.72 billion in 2021, is estimated to touch around $13.54 billion by 2028 and is expected to add huge value to manufacturing, healthcare, BFSI, Retail, FMCG, ICT, agriculture, transport and energy sectors, official data suggests. Uttar Pradesh is looking to adopt AI in manufacturing, ICT, retail and FMCG sectors to begin with. The state government has identified IT & ITeS as a core sector pivotal to propelling the state’s economy.
Plans are afoot to develop a 40-acre land parcel near Lucknow Airport as a potential development site for the AI City.
It is to be noted that Uttar Pradesh is the sixth largest state in terms of the IT ecosystem and is also home to one of the highest number of startups in India. The success of IT has been proven with Noida becoming a global IT & ITeS hub and the State aims to further boost this sector by promoting Tier II cities such as Lucknow that have also been identified by leading IT industry associations as emerging technology hubs.
“With its potential to revolutionize healthcare, finance, manufacturing, and more, AI is not just a technology but a catalyst for economic prosperity, making it a critical cornerstone of our future global economy. Uttar Pradesh acknowledges the pivotal role AI will play in driving the technology ecosystem/sector within the state,” an official spokesperson said.
The 3-day ground breaking ceremony (GBC 4.0), which will commence on February 19, will see a host of eminent speakers from the field of technology highlighting the State’s potential to emerge as the country’s digital hub moving forward. The state government is also set to sign MoUs (Memorandum of Understanding) with four big technology companies for collaboration on AI centres in UP.
The “UP – Emerging Hub for AI in India” will highlight the key strengths of the State to develop as a major technology and AI hub of India. Senior officials from the state government’s infrastructure and industrial development department are likely to set the context for AI in Uttar Pradesh across various industries.
Eminent personalities including Daniel Naeff, Head of Innovation & Entrepreneurship, ETH AI Zurich; Navin Sabharwal, Chief Architect – AI & Head – Central Engineering, HCL Software; Sayed Peerzade, Head Cloud Business Yotta; Himani Agarwal, Country Head-Azure, Microsoft; Ganesh Mahabala, Director – Strategic Business, NVIDIA South Asia; Pankaj Kumar Shukla, Head of Customer Engineering, Public Sector Google Cloud India and Subi Chaturvedi, Global SVP, Chief Corporate Affairs & Public Policy Officer, InMobi Group among others are likely to be present at the event.
Lucknow an Emerging Tech Hub
The proposed AI City, which is likely to come up on a 40-acre land near Lucknow airport, will look to integrate cutting-edge technology, research centres, and educational institutions and also set up COEs (Centre of Excellence) in emerging technologies.
UP Electronics Corporation Ltd., the nodal agency for the project, had recently floated an Expression of Interest (EOI) for design, development and operation of the AI City in Lucknow.
Uttar Pradesh’s visionary initiative to develop an AI city in Lucknow stems from its commitment to fostering innovation, technology, and economic growth and seeks to create a thriving ecosystem for AI focused technology companies, nurturing an environment of innovation and research. By strategically integrating cutting-edge technology, research centers, and educational institutions, the AI city is a testament to the state’s dedication to developing a dynamic AI ecosystem within its capital city, one that not only attracts global talent and investment but also propels India into the forefront of AI innovation, the EoI document said.
The state government will provide 40 acre land at a prime location of Nadarganj Industrial Area for the project, that is free from all encumbrances; support in land acquisition, zoning regulations, and other relevant clearances; provide financial support to the developer through attractive financial incentives, such as one time capex support of 25% up to Rs 20 crore for IT Park and Rs 100 crore for IT City and 100% stamp duty exemption as per the IT & ITeS Policy, 2022 among others to developers undertaking the project.
The real estate developer would be required to prepare a Master Plan of the AI City; devise an operating model; develop an iconic state of the art structure; develop a tower with Grade A office space for incubators, startups and corporate; create a dedicated zone for AI testing and prototyping facilities along with space for research centers and top technology educational institutions and also attract anchor investors in the technology and AI space.
With over 800 thriving tech-related businesses, including BPM, and a burgeoning community of 200+ technology startups, Lucknow is primed to be the next IT hotspot in India. The city houses Centers of Excellence in areas like AI and Med Tech (with extensive AI integration). The AI COE (center in IIIT Lucknow) alone supports more than 15 AI/ML startups, nurturing a culture of creativity and entrepreneurship.
