In a bold move amidst the increasing global reliance on artificial intelligence (AI), Uttar Pradesh, India’s largest state, has set its sights on constructing the nation’s inaugural AI city in Lucknow. This visionary initiative aims not only to house but also to foster and propel the growth of the AI ecosystem within the region.
AI Market Soars: A Pioneering Step by Uttar Pradesh
As per a report by Grand View Research, the global AI market reached a substantial $137 billion in 2022, with a projected compound annual growth rate of 37.3% from 2023 to 2030. Against this backdrop, Uttar Pradesh is positioning itself as a pioneer by embarking on the ambitious endeavor to establish the first AI city in the country.
Nurturing Innovation: An Expression of Interest (EoI) Unveils Plans
An Expression of Interest (EoI) issued by UP Electronics Corporation Ltd., the nodal agency for the project, sheds light on the vision behind the AI city. With a focus on integrating cutting-edge technology, research centers, and educational institutions, the city aspires to become a thriving hub where ideas flourish, and the workforce of tomorrow is nurtured.
Government Support and Financial Incentives
The government’s commitment to the project is evident, with 40 acres in the Nadarganj Industrial Area earmarked for the AI city, offering a conducive environment for development. To attract real estate developers, financial incentives are in place, including one-time Capex support and 100% stamp duty exemption, as outlined in the IT and ITeS Policy, 2022.
The EoI highlights the need for luxury and affordable housing complexes within the AI city, fostering a walk-to-work model. Furthermore, the incorporation of dedicated spaces for top engineering and management institutes aims to promote fruitful industry-academic collaboration. The city will also feature AI-enabled internal modes of transport, enhancing its futuristic appeal.
As Uttar Pradesh endeavors to become a $1 trillion economy in the next five years, the IT and ITeS sectors have been identified as core drivers of this economic propulsion. With the sixth-largest IT ecosystem and a burgeoning startup scene, the state is strategically positioning itself by not only bolstering established IT hubs but also elevating emerging technology centers like Lucknow.
In this dynamic landscape, AI emerges as a key growth driver for the IT and ITeS sectors globally, and Uttar Pradesh is poised to harness its potential. With major IT players already present and a skilled workforce comprising over 75,000 tech professionals, the AI city in Lucknow is set to be a transformative force, contributing to the state’s economic aspirations and the broader technological landscape of India.
