Noida@50: How Sanjay Gandhi’s Emergency-era idea turned dusty fields at Rs 4 to Rs 5 lakh per sq yard

Noida has officially turned 50. The New Okhla Industrial Development Authority (Noida) was established on April 17, 1976—during one of the most controversial phases in India’s political history.

How Noida was born during the Emergency

In 1976, India was under the shadow of the Emergency. Thousands were jailed, and arrests under the stringent MISA law were being carried out with sweeping administrative powers.

It was during this period that Sanjay Gandhi, accompanied by Uttar Pradesh’s then Chief Minister Narayan Dutt Tiwari, was flying from Lucknow to Delhi. As their aircraft approached the capital, Gandhi looked out of the window and noticed vast stretches of farmland along the Yamuna, just outside Delhi. That aerial view sparked an idea, as per a report of the Navbharattimes.


He proposed building a new industrial township to relocate factories from Delhi. The suggestion reportedly received immediate backing from Tiwari, laying the groundwork for what would become Noida. Within months, the Uttar Pradesh government moved to establish an authority to develop the city.

Why Noida was planned

At the time, Delhi’s industrial units were scattered across residential and peripheral areas, contributing to rising pollution and congestion. Officials from that era say Gandhi wanted these units shifted out of the capital to ease environmental pressure and decongest the city.

The land across the Yamuna was seen as ideal for this purpose.

The plan gathered rapid momentum under Emergency-era governance. Files moved swiftly through Lucknow, and on April 17, 1976, the UP Cabinet approved the Uttar Pradesh Industrial Development Ordinance, 1976—formalising Noida’s creation.

Invoking the “urgency clause” in land acquisition laws, the government earmarked large tracts in Ghaziabad and Bulandshahr, including areas that today form Sectors 12, 22, and Labour Chowk.

Villages such as Chora Raghunathpur and Nithari were among the first to be acquired. The process, however, was contentious. Farmers alleged forced acquisition and said they were paid as little as Rs 3–4 per square yard. Protests followed, with some landowners challenging the acquisitions in courts, including the Supreme Court.

From Rs 4 to Rs 5 lakh per sq yard: Noida’s transformation

From a modest industrial township, Noida has evolved into one of India’s most dynamic urban and economic hubs.

Economic liberalisation in the 1990s accelerated its growth, with Software Technology Parks turning the city into an IT hub. Post-2010, major investments in electronics manufacturing brought global giants such as Samsung, Vivo, and Oppo, making Noida a key centre for mobile production and a crucial player in the ‘Make in India’ initiative.

Connectivity has been central to its rise. The DND Flyway (2001), Noida-Greater Noida Expressway, and the Delhi Metro (2009) significantly improved access to Delhi. The Yamuna Expressway further linked the region to Agra, while upcoming infrastructure projects promise even greater connectivity.

Today, Noida hosts thousands of industrial units—from MSMEs to multinational corporations—across sectors such as IT, electronics, textiles, and auto components. Women make up an estimated 30–40% of the workforce in garments and electronics, marking a notable contribution to employment and economic inclusion.

The city has also emerged as a major contributor to Uttar Pradesh’s economy, with Gautam Buddh Nagar among the top districts driving the state’s GDP growth.

According to a report by The Times of India, land prices that were once as low as Rs 4 per sq yard in 1976 have surged dramatically. In prime locations, rates are now reported to be as high as Rs 5 lakh per sq yard.

What lies ahead

Noida’s commercial real estate market continues to expand, with over 43.4 million sq ft of office space and a sharp rise in investment-grade assets. The Noida Expressway belt—particularly sectors 132, 135, and 142—has emerged as a hotspot for global firms and Global Capability Centres (GCCs).

The recently inaugurated Noida International Airport is expected to further boost the region’s growth, strengthening its position as a major economic powerhouse in North India.