§1Policies

§2Incentive pattern

Capital subsidyMSME: 10%-25% of fixed capital by size and region, cap ₹4 crore

Bundelkhand & Purvanchal micro 25%, small 20%, medium 15%; Madhyanchal & Paschimanchal 20/15/10%; +2% SC/ST/women; cap ₹4 crore/unit; 2 equal instalments (building done; 50% production).

UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
Capital subsidyLarge+ (IIEPP 2022): base capital subsidy 10%-30% of ECI over 10-20 years

GB Nagar & Ghaziabad: Large 10% (10 yrs), Mega 18% (12), Super Mega 20% (15), Ultra-Mega 22% (20). Madhyanchal & Paschimanchal: 12/20/22/25%. Bundelkhand & Poorvanchal: 15/22/25/30%. Annual ceiling Large ₹5 crore, Mega ₹10 crore (₹15 crore with boosters), Super Mega ₹50 crore (₹75 crore), Ultra-Mega ₹150 crore (₹210 crore). Subsidy scaled by Gross Capacity Utilisation Multiple (min of 75% or peak utilisation /75%). Boosters 2-4% of ECI each for employment, exports, in-state sourcing.

Invest UP - IIEPP 2022 page (tables, GOs, SOPs)
Interest subsidyMicro only: 50% of interest (60% SC/ST/women), max ₹25 lakh over 5 years

Annual, after interest paid; MSME parks 50% max ₹2 crore/yr for 7 years.

UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
SGST / investment subsidyIIEPP Option 2: 100% of net SGST deposited

Period 6 (Large), 12 (Mega), 14 (Super Mega), 16 (Ultra-Mega) years; annual and overall ceilings as % of ECI by region (e.g. GB Nagar & Ghaziabad annual 16/7/6/5%, overall 80%). Option 3: PLI top-up 30% of GoI PLI, capped at 100% of ECI.

UP Industrial Investment & Employment Promotion Policy 2022 (English, Invest UP)
Stamp duty100% Bundelkhand & Purvanchal; 75% Madhyanchal & Paschimanchal; 50% GB Nagar & Ghaziabad

Same pattern in MSME and IIEPP policies; women MSMEs 100% anywhere; MSME exemption against a bank guarantee released after production; food processing units 100% on land.

UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
EmploymentMSME: 100% of employer EPF share for 5 years

New MSMEs, from start of production.

UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
Export / freightExport freight to gateway ports: lower of ₹20,000/₹40,000 per container or 30%, max ₹30 lakh/yr; air freight 30% or ₹150/kg, max ₹10 lakh/yr

UP Export Promotion Policy 2025-30; food processing exports 25% freight subsidy (not Nepal/Bangladesh/Bhutan).

UP Export Promotion Policy 2025-30 (English PDF, updated 08 Jun 2026)
Patent & qualityPatent/GI 75% max ₹10 lakh; quality certification 75%/50%/25% max ₹5 lakh

Attorney fee max ₹50,000 national / ₹2,00,000 international; ERP 75% max ₹1 lakh; ICT 75% max ₹5 lakh. IIEPP: IPR 50% max ₹1 crore for R&D outputs.

UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
LandIIEPP: fast-track land allotment for Super Mega+ and some Mega projects; Gram Sabha land on 30-year lease; land pooling

Direct allotment at base rate +15% in auction areas for eligible investors (as printed in highlights).

Invest UP - IIEPP 2022 key highlights PDF
Electricity dutyNot found in IIEPP 2022 or MSME Policy 2022 text readUP Industrial Investment & Employment Promotion Policy 2022 (English, Invest UP)
Power tariffPolicy promises independent feeders exempt from power cuts; no tariff concession found

IIEPP para 4.12 (availability of power).

UP Industrial Investment & Employment Promotion Policy 2022 (English, Invest UP)

§3State schemes

More incentives in the policy (31)

Name and benefit are from the policy; the full conditions are not on this page yet — see the policy document.

  • UP MSME Policy 2022 - Stamp Duty Exemption100% in Purvanchal & Bundelkhand; 75% Madhyanchal & Paschimanchal (except GB Nagar, Ghaziabad); 50% in GB Nagar & Ghaziabad; 100% anywhere for women entrepreneurs. Exemption against a bank guarantee equal to the duty, released after production starts.
  • UP MSME Policy 2022 - CGTMSE one-time guarantee feeState pays the one-time guarantee fee under CGTMSE for collateral-free loans up to ₹2 crore.
  • UP MSME Policy 2022 - EPF reimbursement100% of employer's EPF share reimbursed for 5 years from start of production (new MSMEs).
  • UP MSME Policy 2022 - Quality certification / testing lab / IT / training supportCertification, lab setup: 75% (micro) / 50% (small) / 25% (medium), max ₹5 lakh each; IT system max ₹2 lakh; employee qualification training max ₹0.50 lakh.
  • UP MSME Policy 2022 - Patent and GI reimbursement75% of documentation cost, max ₹10 lakh; attorney fee max ₹50,000 (national) / ₹2,00,000 (international); paid only after grant.
  • UP MSME Policy 2022 - ERP and ICT support75% of capex: ERP max ₹1 lakh; ICT max ₹5 lakh.
  • UP MSME Policy 2022 - Stock exchange listing support20% of equity-raising expenses on a stock exchange, max ₹5 lakh.
  • UP MSME Policy 2022 - Mandi fee waiver for food unitsMandi fee waiver for 5 years on raw material for new food processing units with plant & machinery of ₹5 crore or more.
  • UP MSME Policy 2022 - Environment infrastructure and green practicesCETP etc. 50% max ₹10 crore; ZLD equipment 50% max ₹75 lakh; common boiler (min 10 MSMEs) 35% solid/50% clean fuel, max ₹50 lakh; clean technology 40% max ₹20 lakh; green audit 75% max ₹50,000 + equipment 50% max ₹20 lakh; IGBC green rating 50% max ₹2.5 lakh; environment lab/EMS 50% max ₹10 lakh.
  • UP MSME Policy 2022 - Infrastructure interest subsidy for MSME parks / flatted factoriesUp to 50% interest, max ₹2 crore a year, for 7 years; parks 10 acres+ (flatted factory min 4,000 sq m); 100% stamp duty on land for park developers.
  • Mukhyamantri Yuva Swarojgar YojanaPortal lists 25% subsidy (general) / 30% (SC/ST); loans up to ₹10 lakh (service) and ₹25 lakh (manufacturing); age 18-40, high school pass, UP native, not employed.
  • ODOP Training and Toolkit Scheme10-day free non-residential skill + entrepreneurship training, ₹200 per day honorarium, then advanced toolkit; for ODOP-product workers aged 18+.
  • ODOP Marketing Development Assistance SchemeSupport for branding, packaging, exhibitions, trade fairs, buyer-seller meets (amounts not on portal page).
  • ODOP Common Facility Centre (CFC) SchemeShared infrastructure for ODOP clusters - production, testing, design, packaging (amounts not on portal page).
  • UP Export Policy 2025-30 - Marketing Development AssistanceUp to ₹25 lakh per MSME exporter per year: e.g. 75% of stall rent abroad max ₹3.25 lakh + 75% economy airfare max ₹1.25 lakh; certification claims allowed up to the full ₹25 lakh.
  • UP Export Policy 2025-30 - Air Freight Rationalisation30% of air freight or ₹150/kg, whichever lower, max ₹10 lakh per unit per year.
  • UP Export Policy 2025-30 - E-commerce Onboarding Assistance75% of first-year listing/seller/shipping/warehousing fees on international platforms, max ₹3 lakh per exporter per year.
  • UP Export Policy 2025-30 - Dak Ghar Niryat Kendra support75% of postage via Dak Ghar Niryat Kendras, max ₹1 lakh per exporter per year.
  • UP Export Policy 2025-30 - Export performance incentive1% of year-on-year increase in exports, max ₹20 lakh per exporter per year.
  • UP Export Policy 2025-30 - Export Credit Insurance support30% of annual ECGC premium, max ₹5 lakh per unit per year.
  • UP Export Policy 2025-30 - Export-Oriented Specific Project40% capital subsidy, max ₹10 crore, for export infrastructure (testing, logistics, warehousing etc.).
  • UP Food Processing Industry Policy 2023 - capital subsidyNew FPIs: 35% of plant, machinery and technical civil work, max ₹5 crore; expansion/modernisation 25%-35%, max ₹1 crore.
  • UP Food Processing Policy 2023 - reefer vans / mobile pre-cooling interest subsidyInterest reimbursed for 5 years, max ₹50 lakh.
  • UP Food Processing Policy 2023 - cold chain, value addition, agro-processing clusters, linkagesCold chain 35%; frozen storage/value addition 50% up to ₹10 crore; agro-processing clusters 35% max ₹10 crore; backward/forward linkages 35% max ₹5 crore.
  • UP Food Processing Policy 2023 - decentralised processing for SHGs/FPOs/farmersGrant up to 50% of project cost or ₹50 lakh.
  • UP Food Processing Policy 2023 - land, mandi, freight, solar100% stamp duty on land; mandi fee and cess exemption (produce from other states, and direct farmer sales); 25% freight subsidy on exports (not Nepal/Bangladesh/Bhutan); solar 50% rural units, 90% women; CLU fee 50% waived; 75% rebate on external development charges; start-up technology grant up to ₹5 crore.
  • Uttar Pradesh Startup Policy 2026₹20,000/month sustenance allowance up to 2 years; prototype grant up to ₹10 lakh; seed capital up to ₹15 lakh; matching grant up to ₹5 crore; +50% on seed/prototype grants for women/Divyangjan/EWS/transgender-led startups and startups in Purvanchal/Bundelkhand; ₹1,000 crore fund of funds.
  • IIEPP 2022 - Investment Promotion Subsidy (Large and above, ₹50 crore+)Option 1 capital subsidy 10%-30% of eligible capital investment by region/category, paid over 10-20 years; Option 2 100% net SGST reimbursement for 6-16 years (overall cap 80% of ECI in GB Nagar & Ghaziabad); Option 3 PLI top-up 30% of GoI PLI.
  • IIEPP 2022 - R&D and IPR incentiveStandalone R&D units: 25% of expenditure up to ₹10 crore (max 10 units); patents/copyright/trademark/GI from in-house R&D: 50% up to ₹1 crore.
  • IIEPP 2022 - Private industrial parks25% of ECI (max ₹40 crore Madhyanchal/Paschimanchal, ₹45 crore Bundelkhand/Poorvanchal; ₹80 crore for 100+ acres); 25% of worker hostel cost (max ₹25 crore / ₹50 crore); 100% stamp duty on land.
  • UP Aerospace & Defence Unit and Employment Promotion Policy 2024 (First Amendment)Land lease at 1% rent for 10 years / 1.5% beyond; 25% land subsidy in the Defence Industrial Corridor; capital subsidy 25%-35% (caps ₹500-1,000 crore, over 5-15 years); plant & machinery import logistics up to ₹5 crore; export logistics up to ₹25 crore over 5 years; green infra up to ₹1 crore; marketing ₹5-15 lakh over 5 years; skilling up to ₹2 lakh per year for up to 10,000 people; patent and certification refunds. Vendors/SMEs as per MSME Act are an eligible category.

§4District zones

In many states the subsidy rate changes with the zone of the district or block.

ZoneBundelkhand

Highest rates: MSME capital subsidy 25/20/15% (micro/small/medium); stamp duty 100%; IIEPP base capital subsidy 15% (Large) to 30% (Ultra-Mega); private parks qualify at 20 acres (vs 30) with cap ₹45 crore; startup grants +50% (Startup Policy 2026).

We have not yet found the official list of districts in this zone — ask your District Industries Centre (DIC).

UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
ZonePoorvanchal (Purvanchal)

Same as Bundelkhand.

We have not yet found the official list of districts in this zone — ask your District Industries Centre (DIC).

Invest UP - IIEPP 2022 page (tables, GOs, SOPs)
ZoneMadhyanchal

MSME capital subsidy 20/15/10%; stamp duty 75%; IIEPP base 12% to 25%.

We have not yet found the official list of districts in this zone — ask your District Industries Centre (DIC).

UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
ZonePaschimanchal (except Gautam Buddh Nagar and Ghaziabad)

Same as Madhyanchal.

We have not yet found the official list of districts in this zone — ask your District Industries Centre (DIC).

UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
ZoneGautam Buddh Nagar and Ghaziabad

Lowest: stamp duty 50%; IIEPP base capital subsidy 10% (Large) to 22% (Ultra-Mega); SGST option overall cap 80% of ECI. MSME capital subsidy follows Madhyanchal/Paschimanchal rates (policy does not carve these two out for capital subsidy).

Gautam Buddh Nagar · Ghaziabad

Invest UP - IIEPP 2022 page (tables, GOs, SOPs)

Schemes for some districts only

  • One District One Product (ODOP) - margin money, training & toolkit, MDA, CFCAll 75 districts, each only for its notified product(s) (see odopOrClusters)
  • One District One Cuisine (ODOC)All districts, each for its identified food product (district list in GO 2026-27, — see the official guideline.)
  • UP Defence Industrial Corridor (land subsidy 25% in DIC under Defence Policy 2024)Agra, Aligarh, Chitrakoot, Jhansi, Kanpur, Lucknow
  • Services Trade Facilitation Centre (Export Policy 2025-30, ₹2.5 crore provision)Gautam Budh Nagar

→Industrial land in this stateAgency, portal, allotment, lease

§5Famous for

§6Choose your district

For each district: its ODOP product, its subsidy zone and the schemes that run only there.

§7Focus sectors & ODOP

Agro & Food ProcessingHandloom & TextilesTourismMSMEElectronics ManufacturingData CentreDefence & AerospaceWarehousing & logisticsDairy and PoultryIT/ITeSStart-upElectric VehicleFilmRenewable Energy (Solar)PharmaceuticalsCivil AviationBiofuelSemiconductorAVGCPrivate hospitalsPrivate universities/collegesSkill parks; sunrise: green hydrogen, capital goods, chemicals, aircraft components, automobile, circular economy

ODOP / clusters76 entries

Agra: Stone/Marble Engraving Handicrafts; Leather Products & Footwear; Petha Industry

  • Agra: Stone/Marble Engraving Handicrafts; Leather Products & Footwear; Petha Industry
  • Aligarh: Locks & Hardware; Metal Craft
  • Ambedkar Nagar: Textile Products
  • Amethi: Moonj Products; Food Processing
  • Amroha: Dholak; Readymade Garments; Metal & Wooden Handicrafts
  • Auraiya: Dairy Processing (Desi Ghee); Dairy Products
  • Ayodhya: Jaggery Products
  • Azamgarh: Black Pottery; Silk Products
  • Baghpat: Home Decor Products; Agricultural Implements
  • Bahraich: Wheat Stalk Handicrafts; Food Processing
  • Ballia: Bindi; Sattu Products
  • Balrampur: Food Processing (Pulses)
  • Banda: Shazar Stone Craft
  • Barabanki: Handloom Products; Textile Products
  • Bareilly: Zari Zardozi; Bamboo Products; Wooden Products; Goldsmith Work
  • Basti: Wood Craft; Vinegar (Sirka)
  • Bhadohi: Carpets
  • Bijnor: Wood Craft; Brushes
  • Budaun: Zari Zardozi
  • Bulandshahr: Ceramic Products
  • Chandauli: Zari Zardozi; Black Rice
  • Chitrakoot: Wooden Toys; Woodcraft
  • Deoria: Decorative Products; Embroidery Weaving Products; Readymade Garments
  • Etah: Ghungroo Bells; Chicory Products; Brass Products
  • Etawah: Textile Embroidery; Textile Products; Tailoring
  • Farrukhabad: Textile Printing; Zari Zardozi
  • Fatehpur: Bed Sheet; Iron Fabrication
  • Firozabad: Glass Products; Food Processing
  • Gautam Buddha Nagar: Readymade Garments; Textile Products
  • Ghaziabad: Engineering Products; Metal Products; Textile & Apparel
  • Ghazipur: Jute Wall Hangings
  • Gonda: Food Processing (Pulses)
  • Gorakhpur: Terracotta; Readymade Garments
  • Hamirpur: Footwear; Metal Products
  • Hapur: Home Decor Products
  • Hardoi: Handloom Products; Textile Products
  • Hathras: Heeng Processing; Readymade Garments
  • Jalaun: Handmade Paper; Pea Processing
  • Jaunpur: Woolen Durrie
  • Jhansi: Soft Toys; Textile Products
  • Kannauj: Itra/Perfume; Incense Sticks & Dhoopbatti
  • Kanpur Dehat: Aluminium Utensils; Plastic Products
  • Kanpur Nagar: Leather Products; Textile Products; Hosiery
  • Kasganj: Zari Zardozi
  • Kaushambi: Food Processing (Guava, Banana)
  • Kushinagar: Banana Fibre Products; Banana Products
  • Lakhimpur Kheri: Tribal Craft; Jaggery
  • Lalitpur: Zari-Silk Saree; Food Processing; Readymade Garments; Hosiery
  • Lucknow: Chikankari; Zari Zardozi
  • Maharajganj: Furniture
  • Mahoba: Gaura Stone Craft; Metal Craft
  • Mainpuri: Tarakashi Art; Textile Products, Tailoring & Embroidery
  • Mathura: Sanitation Equipment; Decorative Idols & Kanthi Mala; Thakur Ji Attire
  • Mau: Textile Products
  • Meerut: Sports Goods
  • Mirzapur: Carpets; Brass (Metal Udyog)
  • Moradabad: Metal Craft
  • Muzaffarnagar: Jaggery
  • Pilibhit: Flutes; Wooden Products
  • Pratapgarh: Amla Products; Food Processing
  • Prayagraj: Moonj Products; Food Processing
  • Raebareli: Woodcraft
  • Rampur: Zari Patchwork; Mentha; Patchwork with Applique
  • Saharanpur: Wood Carving; Hosiery
  • Sambhal: Horn & Bone Products
  • Sant Kabir Nagar: Brass Utensils; Hosiery
  • Shahjahanpur: Zari Zardozi
  • Shamli: Iron Fabrication; Rim & Axle
  • Shravasti: Tribal Craft; Furniture
  • Siddharthnagar: Kala Namak Chawal
  • Sitapur: Durrie
  • Sonbhadra: Carpets
  • Sultanpur: Moonj Products; Iron & Steel Fabrication
  • Unnao: Zari Zardozi; Leather Products
  • Varanasi: Silk Products; Wooden Toys; Gulabi Meenakari
  • Source: ODOP UP district list (odopup.in/en/districts), checked 18 Oct 2026

  • Defence corridor

    • Nodes: Agra, Aligarh, Chitrakoot, Jhansi, Kanpur, Lucknow
    • Nodal agency: UPEIDA
    • Policy: UP Aerospace & Defence Unit and Employment Promotion Policy 2024 (First Amendment)
    • 1%/1.5% annual lease rent; 25% land subsidy in DIC; capital subsidy 25%-35%; logistics, green infra, marketing and skilling support (see up-defence-2024)

    • §8Why do business here — and why not

    Merits

    • Bundelkhand and Purvanchal MSMEs get 25% (micro) capital subsidy, paid in just two instalments (UP MSME Policy 2022).
    • New MSMEs get 100% of employer EPF share back for 5 years (UP MSME Policy 2022).
    • Policy text records UP as a LEADS 'Top Improver', rising 7 places from 2019 to 6th rank in 2021 (IIEPP 2022 para 2.10).
    • Landlocked-state freight support: up to ₹30 lakh/year for containers to gateway ports (Export Policy 2025-30).

    Demerits

    • Large-project capital subsidy is back-ended - equal yearly instalments over 10 to 20 years (IIEPP 2022).
    • IIEPP subsidy shrinks if capacity utilisation is below 75% (Gross Capacity Utilisation Multiple).
    • Interest subsidy is only for micro units; small and medium get none (MSME Policy 2022).
    • MSME stamp duty exemption needs a bank guarantee equal to the duty until production starts (MSME 1-Connect stamp duty sheet).
    • Export Policy itself notes UP's landlocked position raises export cost versus coastal states.

    Still being researched

    We could not confirm these points from an official source, so no figure is printed on the page.

    Open items8 points pending
    • UP: district-wise list of Bundelkhand / Poorvanchal / Madhyanchal / Paschimanchal not found in policy texts read (Policies name the regions but the annexure mapping each district to Bundelkhand / Poorvanchal / Madhyanchal / Paschimanchal was not found in the IIEPP 2022 text, its Rules, or the MSME Policy 2022 translation.)
    • UP: no electricity duty exemption found in IIEPP 2022 or MSME Policy 2022; not checked in sector policies
    • UP: CM-YUVA full guideline PDF and document list not opened; phase-2 terms (reported in news) not confirmed
    • UP: Vishwakarma Shram Samman 2.0 eligibility/documents blank on official page
    • UP: Food Processing Policy GO of 15 Oct 2025 (Hindi) — see the official guideline. - may change rates
    • UP: Nivesh Mitra URL not opened in this pass
    • UP: Startup Policy 2026 term and eligibility — see the official guideline. from PDF
    • UP: summary-level msmeSchemes records have eligibility/norms/documents = [] (see the guideline)