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UP to Build India’s First AI City in Lucknow

In a groundbreaking move, Uttar Pradesh, India’s largest state, is set to establish the country’s first AI city in Lucknow. This initiative aims to create a thriving hub for artificial intelligence, integrating cutting-edge technology, research centers, and educational institutions to foster innovation and nurture the workforce of the future.

The Global AI Market

According to a report by Grand View Research, the global AI market size reached $137 billion in 2022 and is projected to grow at a compound annual growth rate of 37.3% from 2023 to 2030. Uttar Pradesh’s move to build an AI city aligns with the escalating global significance of artificial intelligence.

Centers of Excellence and Start-up Culture in Lucknow

Lucknow already houses Centers of Excellence in crucial areas like AI and MedTech, with significant AI integration. The AI Center of Excellence at IIIT Lucknow supports more than 15 AI/ML start-ups, fostering a culture of creativity and entrepreneurship in the region.

Expression of Interest (EoI) and Project Details

The Uttar Pradesh Electronics Corporation Ltd., the nodal agency for the project, has issued an Expression of Interest inviting real estate developers to participate in the development and operation of the AI city. The government will allocate 40 acres in the Nadarganj Industrial Area, offering financial incentives, including one-time Capex support and stamp duty exemptions, to the chosen developer.

Infrastructure Development

The selected real estate developer will construct office infrastructure with a plug-and-play setup, including a tower with Grade A office space to accommodate incubators, start-ups, and corporates. The focus is on creating an environment where innovative ideas can flourish.

Inclusive Residential Complexes and Academic Collaboration

The AI city will feature a mix of luxury and affordable housing complexes, promoting a walk-to-work model. Dedicated spaces for top engineering and management institutes will be incorporated to encourage collaboration between industry and academia. The plan also includes AI-enabled internal modes of transport within the city.

Strategic Government Support

With a goal to become a $1 trillion economy in the next five years, the Uttar Pradesh government identifies IT and ITeS as core sectors to drive economic growth. Financial support, along with strategic land allocation and regulatory assistance, underscores the government’s commitment to making the AI city a success.

Tech Ecosystem and Industry Players

Lucknow’s growing tech ecosystem is complemented by major IT players such as HCL and TCS. The city boasts a skilled workforce, with over 75,000 tech professionals, 23,000 STEM graduates, and 300+ colleges, including prestigious institutions like IIM-Lucknow, IIIT-Lucknow, BBDU, and Amity.

Important Questions Related to Exams

Q1. What is Uttar Pradesh’s groundbreaking move in the tech landscape?
Sol. Uttar Pradesh is set to establish India’s first AI city in Lucknow, creating a hub for AI development.

Q2. How does the global AI market size compare to Uttar Pradesh’s initiative?
Sol. The global AI market was $137 billion in 2022, and UP’s AI city aligns with the market’s projected 37.3% CAGR from 2023 to 2030.

Q3. What role do Centers of Excellence play in Lucknow’s tech ecosystem?
Sol. Lucknow houses Centers of Excellence in AI and MedTech, supporting over 15 AI/ML start-ups and fostering creativity.

Q4. Who issued the Expression of Interest for the AI city, and what incentives are offered?
Sol. The Uttar Pradesh Electronics Corporation Ltd. issued the EoI, offering 40 acres in Nadarganj and financial incentives, including Capex support and stamp duty exemptions.

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