What makes Lucknow, a true king of the Business Ring

Lucknow: Lucknow, with its rich cultural heritage, is increasingly becoming a hotspot for business and investment, thanks to focused initiatives like Investor Summits and state-driven business incentives. Here’s an in-depth look at what’s transforming Lucknow into a new-age business destination:

1. Investor Summits as Catalysts for Growth

The Uttar Pradesh Investors Summit, an annual event, has been pivotal in drawing both national and international investors to Lucknow. For instance, the 2023 summit secured investment proposals worth over ₹35 lakh crore ($428 billion) across multiple sectors, marking a record high. Notably, Reliance Industries committed ₹75,000 crore to bolster digital infrastructure and green energy projects, and Adani Group pledged ₹70,000 crore towards multi-sectoral developments including logistics and warehousing.

Key outcomes of these summits include:

• Agreements Signed: Over 18,000 memorandums of understanding (MoUs) were signed at recent summits, covering sectors like electronics, logistics, textile, and agro-processing.
• Job Creation: These investments are projected to create around 20 lakh jobs statewide, with a significant share in Lucknow and adjoining districts.

2. Government Initiatives Boosting Ease of Doing Business

Uttar Pradesh’s government has implemented several policies that are reshaping the business landscape in Lucknow:

• Single-Window Clearance System: Through the Nivesh Mitra portal, the state provides a streamlined, single-window system for project approvals, reducing bureaucratic delays.
• UP Startup Policy 2020: To attract entrepreneurs, the policy offers incentives like a 100% exemption on stamp duty for startups in key sectors and capital subsidy of up to 25% for tech-based startups.
• Lucknow Smart City Project: With ₹6,000 crore invested, this initiative aims to revamp infrastructure, digitalize services, and create a conducive environment for businesses to thrive.

3. Real Estate Boom and Infrastructural Upgrades

Real estate development in Lucknow has surged with new projects in commercial and residential sectors. The Gomti Nagar Extension and Shaheed Path areas are seeing significant investments, creating business-ready zones:

• Commercial Hubs: Malls like Phoenix Palassio and Lulu Mall, each covering over 1 million square feet, have attracted retail giants like H&M, Zara, and Decathlon, generating thousands of jobs.
• Transport Upgrades: With Lucknow-Agra Expressway and Purvanchal Expressway operational, and Ganga Expressway nearing completion, connectivity from Lucknow to major commercial hubs like Delhi and Varanasi has improved dramatically.
• Metro Expansion: The Lucknow Metro has expanded across the city, facilitating easy commute and making the city more accessible for both workers and entrepreneurs.

4. Tech and IT Parks – Driving Innovation

The development of dedicated IT parks, especially the UPSIDC IT City on Shaheed Path, is attracting tech firms and startups. The government’s target to make Uttar Pradesh a $1 trillion economy has made Lucknow a focal point for technology-oriented businesses:

• Tech Giants: Companies like HCL Technologies have set up facilities in Lucknow, with HCL’s Lucknow center employing over 5,000 professionals.
• Startup Ecosystem: With government-backed incubation centers, the city now hosts around 500+ startups, ranging from agritech to fintech, supported by funding from venture capital firms and angel investors.

5. Rise of MSMEs and Agro-Businesses

Lucknow’s strong micro, small, and medium enterprises (MSMEs) sector, traditionally known for handicrafts and textiles, is evolving. With policies providing 20-30% subsidies on capital investments and a 7% interest subsidy for agro-processing, the sector is experiencing significant growth:

• Chikan Embroidery: Chikan artisans have benefitted from these incentives, leading to a 20% growth in exports, with ₹2,000 crore worth of products annually reaching international markets.
• Food Processing: Companies like PepsiCo and ITC have invested in food processing units near Lucknow, taking advantage of the abundant agricultural produce in the region.

6. Lucknow’s Role in Green and Renewable Energy Initiatives

With Uttar Pradesh aiming to be a leader in green energy, Lucknow’s participation in solar and renewable energy projects is increasing. The government’s push towards renewable energy has made the city a hub for solar manufacturing and installation:

• Solar Park Projects: The 100 MW solar park project near Lucknow, developed by NTPC, has attracted several solar companies to the region.
• EV Infrastructure: Lucknow is also expanding its electric vehicle (EV) infrastructure, with plans to install over 100 EV charging stations by the end of 2024, encouraging green mobility and attracting investments from EV manufacturers.

7. Educational and Skill Development Initiatives

To meet the labor demands of these growing sectors, Lucknow’s educational institutions are increasingly offering courses aligned with industry needs:

• Skill Development Centers: Institutes like the Dr. APJ Abdul Kalam Technical University and Indian Institute of Management Lucknow have established dedicated skill development centers focused on emerging sectors.
• Youth Employment Programs: Programs like Mission Rozgar are designed to upskill around 10 lakh youth annually, aligning them with the needs of Lucknow’s emerging industries.

8. Growing Tourism and Hospitality Industry

The rise in tourism and the strategic development of Lucknow as a cultural and heritage destination have fueled the hospitality sector:

• Luxury Hotels and Resorts: New hotels, including Hyatt Regency and Taj Mahal Hotel, have set up operations in Lucknow, catering to both tourists and business travelers.
• Events and Exhibitions: Venues like the Indira Gandhi Pratishthan are hosting high-profile events, drawing visitors and contributing to the local economy.

Lucknow’s journey as a business destination is backed by robust government initiatives, infrastructure upgrades, and private investments across diverse sectors. With ₹35 lakh crore in investment proposals, a 20 lakh job forecast, and a growth rate in real estate, tourism, and technology, Lucknow is truly evolving into a vibrant business hub. Its unique blend of heritage and modernity, combined with strategic policies and infrastructural advancements, are setting the stage for Lucknow to be a central player in India’s economic landscape.