The Uttar Pradesh government has unveiled a ₹2,500 crore investment package to rapidly expand the state’s pharmaceutical manufacturing ecosystem. The initiative focuses on developing dedicated pharma parks, upgrading infrastructure, offering attractive incentives, and attracting both domestic and international companies to set up API, formulation, and medical device manufacturing units, aiming to position Uttar Pradesh as a major pharma hub in North India.
Glimpse:
The ₹2,500 crore package includes development of new pharma and medical device parks with plug-and-play infrastructure, power and water subsidies, stamp duty exemptions, single-window clearances, and skill development programmes. The government is targeting large-scale investments in active pharmaceutical ingredients (APIs), finished dosage forms, biologics, and medical devices, with special emphasis on export-oriented units. The move is expected to generate thousands of jobs, boost local manufacturing, reduce import dependence, and contribute significantly to the state’s economic growth in the coming years.
The Uttar Pradesh government has announced a major ₹2,500 crore investment push to strengthen and expand the state’s pharmaceutical manufacturing ecosystem. Chief Minister Yogi Adityanath and senior officials made the announcement on February 27, 2026, during a high-level industry interaction in Lucknow, positioning the state as an emerging pharma powerhouse in North India.
The comprehensive package includes the development of new dedicated pharmaceutical and medical device parks with world-class plug-and-play infrastructure, reliable power supply, water treatment facilities, and common effluent treatment plants. Companies setting up units in these parks will receive attractive incentives such as capital subsidies, stamp duty exemptions, interest subventions, and long-term power tariff concessions. The government has also committed to single-window clearances through the Nivesh Mitra portal and fast-track approvals to reduce project implementation timelines.
The initiative targets large-scale investments across the entire value chain — active pharmaceutical ingredients (APIs), key starting materials, finished dosage forms, biologics, biosimilars, and medical devices. Special focus is being given to export-oriented manufacturing units and those producing critical molecules currently imported in large volumes. The government aims to attract both established Indian pharma companies and global players looking for cost-competitive, high-quality manufacturing bases.
Officials highlighted that the ₹2,500 crore allocation will be utilised for land development, infrastructure creation, skill development centres to train workers for pharma jobs, and common testing and quality control facilities. The move is expected to generate thousands of direct and indirect employment opportunities while contributing to India’s broader goal of self-reliance in pharmaceutical manufacturing under the Atmanirbhar Bharat and PLI schemes.
This announcement reflects Uttar Pradesh’s aggressive push to emerge as a preferred investment destination for the life sciences sector, leveraging its large talent pool, strategic location, and improving ease of doing business ranking. Industry leaders have welcomed the package, noting that it provides the right mix of policy support and infrastructure to make large-scale investments viable in the state.
“Uttar Pradesh is committed to becoming a global pharma manufacturing hub. With this ₹2,500 crore investment, we are creating world-class infrastructure and offering attractive incentives to attract the best companies and generate high-quality jobs for our youth.”
By
HB Team
Related News
