Uttar Pradesh is seeking to take its green hydrogen partnership with Japan beyond research and institutional cooperation to pilot projects, technology deployment and commercial-scale investments, while planning a dedicated ‘Japan City’ to attract Japanese companies in semiconductors, electronics, data centres and advanced manufacturing.
The push comes as Escorts Kubota and Minda Corporation have moved ahead with manufacturing projects in the Yamuna Expressway Industrial Development Authority (YEIDA) region, adding to the investment pipeline created through the state’s growing engagement with Japan.
Major manufacturing investments to boost jobs
Escorts Kubota is setting up a Rs 2,025-crore plant in YEIDA’s Sector 10, with first-phase capacity to manufacture 60,000 tractors and 15,000 construction equipment units annually. The project is expected to generate 3,829 direct jobs and have a Gross State Value Added impact of more than Rs 7,756 crore. Minda Corporation has proposed Rs 1,166 crore investment across two projects in Sectors 10 and 24, expected to create around 6,440 employment opportunities.
Japanese companies such as Denso, Nagase and Seiko Advance already have operations in Uttar Pradesh. Invest UP has identified Escorts Kubota, Minda Corporation, Toyo Denso and Nagase among the key drivers of Japan-linked investment in the state.
“We have India’s largest youth workforce — talented and skilled — and we aim to introduce this workforce to Japanese work ethics and standards. Our priority is to connect our youth with Japanese manufacturing culture,” Chief Minister Yogi Adityanath said.
The state is looking to integrate practices including Kaizen, 5S, lean manufacturing, robotics, automation and precision engineering into its skills and manufacturing ecosystem.
Green energy is emerging as another important pillar of the partnership. Following the Uttar Pradesh-Yamanashi MoU signed in on December 23, 2024, two green hydrogen Centres of Excellence have been established through IIT Kanpur-HBTU Kanpur and IIT-BHU-MMMUT Gorakhpur. The state has approved and disbursed Rs 50 crore for each centre.
Uttar Pradesh now wants its cooperation with Yamanashi to expand to joint research, pilot projects and commercial ventures. Companies including NTPC, BPCL, Torrent Power, Hygenco, L&T Green Energy, Avaada and ReNew E Fuels have shown interest in green hydrogen projects in the state.
Green hydrogen, Japan City drive UP’s industrial push
The Uttar Pradesh Green Hydrogen Policy 2024 targets annual production capacity of 1 million tonne of green hydrogen and green ammonia by 2028 and envisages four Centres of Excellence.
The state has also proposed a 500-acre Japan City in the YEIDA region as a dedicated industrial ecosystem for Japanese investors.
“We have more than 75,000 acres of dedicated industrial land bank and 27 industrial manufacturing and logistics clusters are coming up on the Expressway,” the CM said.
Uttar Pradesh has over 9.6 million MSMEs and more than 22,000 startups, while producing 55% of India’s mobile phones. Its GSDP has risen from Rs 13.3 lakh crore in 2016-17 to Rs 30.8 lakh crore in 2024-25.