Uttar Pradesh’s excise policy for 2025 has emerged as a major driver of industrial growth and rural economic development, with official data showing record ethanol production of 182 crore litres till November 2025, the highest in the state’s history. Excise Minister Nitin Agarwal attributed this milestone to structural reforms, streamlined industrial clearances, and the adoption of modern technology across distilleries and bottling units.
Of the total ethanol produced, 105.25 crore litres were sold within the state, while 40.96 crore litres were supplied to other states, positioning Uttar Pradesh as one of India’s most dependable ethanol suppliers. Mukesh Singh, Vice-President of Assocham UP, highlighted that ethanol production strengthens rural supply chains, providing farmers with assured markets, quicker payments, and better price realisation for sugarcane and grain crops.
The excise sector is attracting strong investor interest, with 125 agreements signed under the Invest UP programme, amounting to proposals worth ₹30,735 crore. Land allocation has been completed for 43 projects valued at ₹6,898.88 crore, while 19 operational projects have already generated over 4,800 jobs, reflecting growing investor confidence in the state’s industrial ecosystem.
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Excise Minister Agarwal emphasized that the 2025 policy is generating employment and encouraging youth to work locally. Incentives such as land, electricity, and tax concessions, along with an e-licensing system, have made investment in distilleries and bio-ethanol units more attractive. The sector has already created over 25,000 direct and indirect jobs, with further investment proposals worth ₹3,328 crore pending approval across multiple districts.
Beyond industrial growth, officials note that rising excise revenue and ethanol production contribute to Uttar Pradesh’s ambition of becoming a $1 trillion economy while supporting India’s green energy goals. Increased demand for sugarcane, maize, and broken rice has strengthened allied sectors including transport, warehousing, agro-processing, and machine repair, benefiting rural communities and curbing youth migration to cities.
With continued policy support and investment inflows, Uttar Pradesh is witnessing a robust cycle of growth where industrial expansion, agriculture, and rural employment reinforce each other, creating a sustainable and resilient economic model for the state.
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