Fringes to frontline: Purvanchal phoenix rising on growth, investment push

Long defined by a troubled reputation, the region is scripting a new story through connectivity, industry, logistics, investment, and entrepreneurship

Uttar Pradesh (UP), particularly its eastern region known as Purvanchal, once associated with notorious criminals, is fast emerging as the state’s growth hub, driven by a massive infrastructure push, improved law and order, and greater ease of doing business, UP Excise Minister Nitin Agarwal said at the Business Standard Ubharta (Rising) Purvanchal Conclave.

 

Delivering the inaugural address, Agarwal said eastern UP had moved beyond its traditional identity to become a key contributor to the state’s economic growth. He attributed the transformation to sustained public investment in roads, industrial infrastructure, tourism, education and healthcare.

 

Agarwal said not only eastern UP but the entire state is undergoing a “massive and historic economic transformation” and is steadily moving towards its ambition of becoming a $1 trillion economy.

 

 

He said UP has emerged as one of India’s fastest-growing investment destinations under the leadership of Prime Minister Narendra Modi and Chief Minister Yogi Adityanath, with Purvanchal playing a pivotal role in the state’s growth. “UP today is not merely building roads, airports, and industrial parks. We are also creating robust digital and administrative infrastructure that ensures transparent governance, faster approvals, and technology-driven service delivery, all of which are critical for sustained economic growth,” he said.

 

The minister said UP’s economy is expanding at 11.6 per cent, contributing 9.1 per cent to India’s economy while accounting for 11.2 per cent of the country’s exports and nearly 21 per cent of national foodgrain production. Highlighting the state’s industrial progress, Agarwal said the number of registered factories had more than doubled from 14,169 in 2016-17 (FY17) to 31,469 by November 2025-26 (FY26), reflecting rising investor confidence and manufacturing activity.

 

The government has set a target of expanding UP’s gross state domestic product from ₹13.3 trillion in FY17 to ₹40 trillion by 2026-27. During the same period, the state Budget has grown from ₹3.46 trillion to ₹9.12 trillion, while per-capita income has more than doubled to around ₹1.2 lakh, he said.

 

Agarwal said UP has attracted investment proposals worth more than ₹50 trillion over the past nine years, with projects exceeding ₹15 trillion already under implementation. These investments are expected to generate employment and self-employment opportunities for more than 6 million people.

 

Referring to the World Economic Forum 2026, he said the state signed memoranda of understanding worth ₹2.94 trillion covering sectors such as artificial intelligence, data centre, food processing, renewable energy, and defence manufacturing.

 

The minister also highlighted UP’s micro, small and medium enterprise (MSME) ecosystem, saying the state now hosts more than 9.6 million MSMEs, the highest in the country, providing employment to over 31.1 million people. Industrial infrastructure has been strengthened through plastic parks, food parks, garment parks, and proposed textile parks across multiple districts, he added.

 

Connectivity, Agarwal said, has become the state’s biggest competitive advantage. UP now accounts for 55 per cent of India’s expressway network, with nine expressways operational and 13 under construction. The state also has 17 operational airports, while the Noida International Airport is under development. Metro rail services are operational in seven cities.

 

The excise department has also undergone a major transformation through digital monitoring and e-governance initiatives. Excise revenue has increased from about ₹140 billion in FY17 to ₹577.22 billion in FY26, nearly 4x higher, he said. The department has received 157 investment proposals worth ₹406.42 billion, expected to generate around 50,000 direct jobs, while another 26 projects are ready for implementation under Groundbreaking Ceremony 5.0.

 

Agarwal credited UP’s growing appeal among investors to improved law and order, modern infrastructure, investor-friendly policies, single-window clearances, a vast domestic market, and flagship initiatives such as One District One Product and MSME promotion. “Better connectivity, transparent governance, and policy stability have transformed UP into one of India’s most attractive investment destinations. Purvanchal is at the core of this transformation and will play a defining role in achieving the state’s $1 trillion economy vision,” he said.

 

Agarwal said Varanasi, at the heart of Purvanchal, has become the focal point of this transformation, describing the city as a model for balancing heritage conservation with modern urban development.

 

Over the past 12 years, he said, the city has seen major improvements in physical infrastructure, public services, and tourism while retaining its cultural and religious character. Improved connectivity has emerged as the biggest catalyst for economic activity in the region.

 

With several large projects already completed and new industrial and logistics hubs under development, Purvanchal is expected to play an increasingly important role in UP’s goal of becoming a $1 trillion economy.

 

Agarwal said Varanasi demonstrates that economic expansion and preservation of cultural heritage can go hand in hand, emerging as an example of how investments in connectivity, tourism, and industry can create new centres of economic activity while retaining the city’s historical and religious importance.

 

UP Minister of State for MSME Hans Raj Vishwakarma, who also addressed the gathering, said every successful business starts small and grows over time, provided there are no unnecessary obstacles. Earlier, the biggest hurdle was poor law and order and the threat of criminal elements, which the current government has largely eliminated.

 

“Today, anyone is free to set up a business, whether it is a large industrial unit or a small enterprise, without fear or interference. There is no question of anyone receiving threatening phone calls. Earlier, whenever someone tried to establish a business, criminal elements would interfere, halt work, and demand money. We all know how incidents of kidnapping, extortion, and brutal killings were once common in these parts,” Vishwakarma said.

 

He said the region, once constrained by inadequate infrastructure and an uncertain business environment, is now attracting investment and entrepr- eneurship under the leadership of Modi and Adityanath. “Purvanchal is no longer defined only by its cultural heritage. It is emerging as a centre of industry, innovation, and entrepreneurship, supported by skilled human resources, agriculture, horticulture, and traditional craft,” he said. The minister said the state’s industrial ecosystem has undergone a major transformation since 2017, with governance reforms, better connectivity, and improved security encouraging businesses to expand.

 

According to Vishwakarma, the Centre’s Local to Global vision and the UP government’s industry-friendly policies have created a favourable environment for investment and enterprise. Schemes implemented by the MSME department are enabling youth, women, and traditional artisans to establish businesses and contribute to the state’s self-reliance agenda.

 

He described local products, skilled artisans, and entrepreneurial youth as Purvanchal’s biggest strengths, while stressing that future growth would depend on value addition, branding, technology adoption, digitalisation, and integration with global markets.

 

“The objective is not merely to manufacture products but to create globally competitive brands that generate employment while showcasing Purvanchal’s unique identity,” Vishwakarma said, urging entrepreneurs to leverage government schemes and adopt innovation and quality standards.

 

He said improved law and order, better roads, uninterrupted power supply, and faster logistics have strengthened investor confidence and reduced operational bottlenecks. “Whether it is a small enterprise or a large manufacturing unit, entrepreneurs today can establish businesses with confidence. The government remains committed to resolving their concerns and creating an enabling ecosystem for industrial growth,” he added. Vishwakarma linked the state’s MSME agenda to the broader national goal of building a Viksit Bharat by 2047, saying a strong manufacturing base and globally competitive small businesses would be critical to achieving that objective.

 

He called on entrepreneurs to expand production and exports as global competition intensifies, saying India’s long-term economic strength would depend on building globally competitive industries and deepening its presence in international markets.

 

“Our commitment is to ensure that every entrepreneur has the security, infrastructure, and policy support needed to grow. Together, we can make Purvanchal a leading industrial and export hub while contributing to UP’s and India’s growth story,” Vishwakarma said.

 

Vishwakarma said the government’s continued focus on strengthening infrastructure has reduced logistical challenges for industry. Better roads, uninterrupted power supply, and an improved security environment have collectively enhanced the ease of doing business, particularly for MSMEs, which form the backbone of UP’s industrial ecosystem.

 

He said the government remains committed to supporting entrepreneurs at every stage of their business journey. Whenever investors or industrial units face difficulties, the administration is prepared to address them promptly, with the objective of creating a business-friendly ecosystem where enterprises can operate and expand with confidence.

 

According to the minister, UP’s industrial growth is closely aligned with Modi’s vision of an Aatmanirbhar Bharat and the state’s ambition of becoming an Aatmanirbhar UP. These goals, he said, are part of the broader national mission of building Ek Bharat Shreshtha Bharat and contributing to India’s aspiration of becoming a developed nation by 2047.

 

“India has accepted the challenge of emerging as a developed country by 2047. Every sector, including MSMEs, has a critical role in achieving this objective. The government is committed to protecting industries, providing them with the necessary facilities and ensuring an enabling environment for sustained growth,” he said.

 

Vishwakarma said every entrepreneur aspires to grow, with small enterprises seeking to become medium-sized businesses and medium enterprises aiming to scale into large ones. The government’s responsibility, he said, is to create policies and infrastructure that enable such aspirations to be realised.

 

Urging entrepreneurs to play an active role in the state’s development, he called on them to invest, expand production, and strengthen UP’s industrial base. He also underlined the growing importance of economic strength in shaping global influence, saying countries across the world are striving to expand trade, strengthen exports, and secure larger markets, while India continues to pursue economic growth alongside peace and global cooperation under Modi’s leadership.

 

Vishwakarma said UP’s governance reforms and development model have received increasing national recognition, reflecting the state’s emergence as a preferred destination for investment and industrial growth. 

Engine of the east

 

The roads that changed the route

 

Purvanchal Expressway: A 341-km, six-lane expressway connecting Lucknow and Ghazipur. An emergency aircraft landing strip has also been built in Sultanpur

 

Gorakhpur Link Expressway: A 91-km, four-lane expressway linking Gorakhpur with the Purvanchal Expressway, reducing travel time to Lucknow to  3–3.5 hours

 

Kushinagar International Airport: Fully operational, the airport has been developed to promote tourism and strengthen the Buddhist Circuit

 

Flatted Factory Complex: Purvanchal’s first flatted factory complex has been inaugurated at GIDA, Gorakhpur, benefiting small industries and accommodating around 80 industrial units

 

The next stretch of the journey 

• Industrial clusters and parks are being developed across 12 districts along the Purvanchal Expressway
• Planned facilities include garment parks, plastic parks, warehouses, food processing units, MSME clusters, and logistics hubs
• The corridor aims to attract investment, generate employment, and transform the expressway into a major hub of economic activity

 

Varanasi’s Renaissance

 

• Under the Namami Gange Mission, ghats of the Ganga have undergone extensive redevelopment, including beautification, improved lighting, enhanced cleanliness, and environmental conservation
• The five key stops on the Panchkoshi Parikrama route — Kardameshwar, Bhimchandi, Rameshwar, Shivpur, and Kapildhara — have been comprehensively developed
• Around ₹97 crore has been spent on widening the Panchkoshi route, while nearly ₹39.3 crore has been invested in religious tourism and related infrastructure
• Varanasi has undergone a historic transformation over the past 12 years (2014–26)
• Under the Brand Banaras initiative, 727 projects worth ₹61,218 crore have been launched
• 536 projects worth ₹36,211 crore have been completed
• 191 projects worth nearly ₹25,007 crore are in the final stage of completion
• The city has gained fresh momentum in investment and industrial development
• Investment proposals worth around ₹23,500 crore have been received, with the potential to generate more than 50,000 jobs
• Special emphasis has been placed on promoting Banarasi saris, handicrafts, woodcraft, agriculture-based industries, and the MSME sector