UP IT and ITeS Policy 2022: What Tech Businesses Should Know

When people think of UP’s industrial policy landscape, manufacturing usually comes to mind first — textiles, food processing, electronics. But the state has also been building out incentives specifically for IT and IT-enabled services (ITeS), through the UP IT and ITeS Policy 2022, which updates the state’s earlier 2017 IT policy.

Why IT companies need a different kind of policy

Manufacturing incentives are typically built around capital investment in plant and machinery. IT and ITeS businesses don’t operate that way — their biggest costs are usually people, office space, and intangible assets like software and intellectual property. A policy aimed at this sector has to reflect that, which is why the incentive categories look somewhat different from what a factory would qualify for.

What kind of support this policy typically offers

Broadly, IT and ITeS policies of this kind include:

• Stamp duty exemption — relief on the stamp duty payable when acquiring or leasing office space, which can be a meaningful upfront cost for a growing company
• Land-related subsidy — support connected to acquiring land or built-up space for setting up operations, relevant particularly for larger IT parks or campuses
• Patent filing assistance — support with the cost of protecting intellectual property, relevant for companies building proprietary software or technology

Who this is relevant for

This policy is worth reviewing if you’re:

• Setting up a software development, IT services, or business process outsourcing (BPO) operation in UP
• Expanding an existing tech operation into the state, including setting up a second office or delivery centre
• A tech company evaluating where to base operations and weighing UP against other states

If you’re already operating in one of UP’s designated IT hubs or parks, there may be additional location-specific benefits layered on top of the general policy — worth checking specifically rather than assuming the state-wide terms are all that’s on offer.

What this means for you

As with UP’s other sector policies, the categories described above are consistent, but exact rates, eligibility thresholds (minimum headcount, minimum built-up area, and so on), and application timelines are set through Government Orders that get revised periodically. Confirm current terms rather than relying on what a similar company received a year or two ago.

If you’re setting up or expanding a tech business in UP, message us on WhatsApp. We can review your plans and tell you what you’re eligible for under this policy.