The Uttar Pradesh government has allocated Rs. 5,041 crore (US $ 556 million) in its 2026–27 state budget to strengthen the textiles and village industries sectors, underscoring its focus on employment-intensive traditional industries alongside broader industrial expansion.
A substantial portion of the funds — Rs. 4,423 crore (US $ 488 million) — has been designated for the Atal Bihari Vajpayee Powerloom Bunker Vidyut Flat Rate Yojana, a programme aimed at subsidising electricity costs for handloom and powerloom weavers. Officials said the measure is expected to lower production expenses, improve profit margins and enhance the competitiveness of textile clusters across the state. A target has been set to generate 30,000 jobs in the textile sector in the coming financial year.
In addition, Rs. 150 crore (US $ million) has been allocated under the Uttar Pradesh Textile and Garmenting Policy-2022 to attract fresh investment, promote modernisation and encourage value addition in garments and apparel manufacturing.
The budget also places emphasis on supporting village and traditional industries. Under the Mukhyamantri Gramodyog Rozgar Yojana, the state plans to facilitate bank loans of Rs. 40 crore (US $ million) to establish 800 new units, which is expected to generate 16,000 jobs in rural areas. Meanwhile, Rs. 10 crore (US $ million) has been earmarked for the Pt Deendayal Gramodyog Rozgar Yojana to provide interest subsidies on loans for rural enterprises, aiming to ease credit access for small entrepreneurs.
Officials said the combined measures are intended to strengthen the rural enterprise ecosystem, preserve traditional skills and support inclusive economic growth across the state’s economy.
