Uttar Pradesh budget allocates $556 million for the development of the textile sector. The Uttar Pradesh government has allocated ₹5,041 crore (approximately $556 million) in the state budget for 2026-27 to develop the textiles and village industries sector. This allocation reflects the state government’s focus on employment-oriented manufacturing and traditional sectors as part of its overall development of industries.
Out of the total allocation, ₹4,423 crore (approximately $488 million) has been allocated to the Atal Bihari Vajpayee Powerloom Bunker Vidyut Flat Rate Yojana. This scheme offers subsidized power to handloom and powerloom weavers. This initiative is expected to reduce the cost of production, increase the income of weavers, and enhance the overall competitiveness of the textile industry in Uttar Pradesh. The state government has set a target of creating 30,000 jobs in the textile industry in the next financial year.
In addition to this, to further encourage investment and expansion, ₹150 crore has been allocated under the Uttar Pradesh Textile and Garmenting Policy-2022. This amount is expected to help in the modernization of the sector, as well as attract new investment and encourage value addition in garment and apparel manufacturing.
The budget also gives a lot of importance to village and traditional industries. Under the Mukhyamantri Gramodyog Rozgar Yojana, the state government aims to facilitate bank loans of ₹40 crore to set up 800 new units, which are expected to generate employment for around 16,000 people in rural areas. In addition to this, ₹10 crore has been allocated under the Pt Deendayal Gramodyog Rozgar Yojana to provide interest subsidies on loans, which will help small rural entrepreneurs get loans at subsidized rates.
According to government officials, these initiatives are aimed at making the rural enterprise ecosystem stronger and also at ensuring that traditional skills are maintained and economic growth becomes more inclusive.
