Uttar Pradesh Tops India’s Capital Expenditure Chart with 16.3% Share, Strengthens Defence and Industrial Investment

Uttar Pradesh strengthens its leadership in infrastructure and industrial growth with record-breaking capital expenditure and major investments in the Defence Corridor

Abhay Raj6 hours ago

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Lucknow | 25, June 2025 : Uttar Pradesh (UP) has once again emerged as India’s top state in capital expenditure, according to a recent report by Bank of Baroda. The state is projected to contribute 16.3% of India’s total capital expenditure in FY 2025–26, cementing its position as a national leader in infrastructure and industrial investment. This marks the second consecutive year UP has achieved this feat, signaling consistent economic planning and growth-focused governance.

The report estimates the total combined capital outlay of 26 Indian states will reach ₹10.2 lakh crore in FY 2025–26, up from ₹8.7 lakh crore in the previous fiscal. Uttar Pradesh leads the pack with the highest share, followed by Maharashtra (9.4%), Andhra Pradesh (8.3%), Madhya Pradesh (8.1%), and Karnataka (7.6%). Together, these five states will account for over 50% of the country’s capital spending.

UP’s capital expenditure is primarily driven by massive investments in roads, highways, health infrastructure, and industrial parks. Such investments are designed to create long-term economic value and employment. The state’s focus on asset creation through capex is also reflected in its leadership in revenue generation, with a projected 13.3% share in total revenue collections among states in FY 2025–26.

The growth in revenue is supported by strategic industrial expansion, digital governance reforms, and aggressive policy support for investments. Uttar Pradesh has also become a leading state in industrial development through focused initiatives like the Uttar Pradesh Defence Industrial Corridor (UPDIC), which is being promoted as a key driver of economic transformation in the region.

To attract large-scale domestic and international investment in the defence and manufacturing sectors, the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) is organizing the Uttar Pradesh Defence and FDI Conclave in New Delhi on June 30. The event will showcase the vast potential of UP’s Defence Corridor and provide a platform for B2B engagement between global firms and Indian defence manufacturers. This will be followed by an Investors Round Table facilitated by Invest UP, with active participation from state officials including Chief Secretary Manoj Kumar Singh.

The UP Defence Corridor has already secured ₹28,809 crore in investments across six major nodes: Kanpur, Jhansi, Lucknow, Aligarh, Agra, and Chitrakoot. Over 170 MoUs have been signed, and more than 47 companies have been allotted land, with seven already commencing manufacturing operations. Lease deed execution is underway for an additional 100+ firms.

Uttar Pradesh’s rapid economic growth, strong fiscal policies, and ambitious infrastructure investments make it one of India’s most attractive destinations for investors. With focused government support, high capital outlay, and the rise of mega projects like the Defence Corridor, UP is redefining industrial progress and setting new benchmarks in capital expenditure leadership.