Union Budget reinforces UP’s role in India’s growth: IACC UP chairman

Mukesh Singh, chairman of the UP Coordination Committee of the Indo-American Chamber of Commerce (IACC), has said the Union Budget 2026–27 clearly underscores the Central government’s intent to project Uttar Pradesh as a key driver of India’s economic growth.

One of the standout highlights of the Budget is the focus on Kashi (Varanasi).

Advertisement

In his statement on Monday, Singh said, “The Finance Minister has announced plans to build a ship repair ecosystem in Varanasi as part of the inland waterways initiative. Designed to boost cargo transportation along the Ganga River, the project is viewed as an important move toward transforming Varanasi into a major logistics and transportation hub. It is also expected to open up new job opportunities for the local population.”

He further said, “Connectivity infrastructure in the state is also set for a major upgrade. The Budget proposes two high-speed rail corridors covering nearly 1,500 kilometres. One corridor will link Delhi with Varanasi, while the other will connect Varanasi to Siliguri.”

He said these projects are likely to stimulate trade, industry, and overall economic activity in eastern Uttar Pradesh and beyond by ensuring quicker movement of passengers and goods. The financial plan further includes significant steps to improve the state’s healthcare and social infrastructure.

Singh said district hospitals are proposed to see a capacity enhancement of up to 50 per cent, along with the rollout of emergency and trauma care centres across all districts. Additionally, the Centre intends to establish a girls’ hostel in each of the state’s 75 districts, aimed at making education more accessible for female students.

He said urban infrastructure development has also been prioritised. The Centre plans to upgrade facilities in cities with populations above five lakh through a public capital expenditure programme worth Rs 12.2 lakh crore. Nearly 25 cities in Uttar Pradesh, including Lucknow, Ayodhya, and Gorakhpur, are expected to benefit.

“The Budget also refers to the development of smaller pilgrimage destinations, which could further boost religious tourism in the state. On the industrial front, the announcement of Semiconductor Mission 2.0 is seen as a major step. A semiconductor park coming up in Noida is projected to generate large-scale employment,” he added.

According to the Indo-American Chamber of Commerce, this initiative can help Uttar Pradesh secure a prominent place in India’s high-technology manufacturing landscape. Taken together, the Budget outlines a broad-based development push for Uttar Pradesh, combining infrastructure growth, industrial expansion, social sector strengthening, and job creation, reinforcing the state’s rising importance in the national economic framework.