Uttar Pradesh Sees Surge in Investments Following Yogi Government’s Excise Policy 2025
Industrial growth, rural employment, and ethanol production surge as UP strengthens its excise sector and attracts over Rs 30,000 crore in investments.
LUCKNOW, Dec 11, 2025 – Uttar Pradesh’s Excise Policy 2025 has delivered a substantial boost to the state’s economy, driving record ethanol production, attracting large scale investments, and generating thousands of jobs across rural and urban areas.
Official figures show that the state produced 182 crore litres of ethanol till November 2025, the highest in its history. Excise Minister Nitin Agarwal credited the surge to structural reforms in the excise sector, simplified industrial clearances, and the adoption of modern technology in distilleries and bottling units. Of the total output, 105.25 crore litres were sold within UP, while 40.96 crore litres were supplied to other states, making the state a key ethanol supplier nationwide.
Investment and Industrial Growth:
Under the Invest UP programme, the excise sector has attracted 125 agreements worth Rs 30,735 crore. Land allocation has been completed for 43 ready-to-launch projects with investments of Rs 6,898.88 crore. Currently, 19 projects are operational, generating over 4,800 jobs, while 28 other excise related projects contribute an additional Rs 2,752 crore in investment.
“The new excise policy has not only attracted investors but also strengthened the industrial base of the state, particularly in liquor, beer, wine, and bio-ethanol sectors,” said Minister Agarwal. He highlighted concessions on land, electricity, taxes, and the introduction of an e-licensing system, which have made UP more investor-friendly.
Rural and Employment Impact:
The policy’s benefits extend to rural communities, with sugarcane and grain-based distilleries supporting thousands of farmers by providing a reliable market, faster payment cycles, and better price realization. Mukesh Singh, Vice-President of Assocham UP, noted that rising distillery operations are creating demand for agricultural produce and boosting allied sectors such as transportation, warehousing, and machine repair.
With over 25,000 direct and indirect jobs already created, UP is linking industrial expansion with employment opportunities, especially for local youth, reducing migration to larger cities. New investment proposals worth over Rs 3,328 crore have already been received for districts including Gorakhpur, Mathura, Sambhal, Unnao, Ghaziabad, and Muzaffarnagar, ensuring continued economic growth.
Boost to State Economy and National Energy Goals:
The rising excise revenue contributes to UP’s goal of becoming a one-trillion-dollar economy, while the expanding ethanol production aligns with India’s green energy targets, reducing reliance on fossil fuels. Industry experts say the policy is fostering a resilient economic model by integrating industrial growth with rural agriculture-based supply chains.
