Uttar Pradesh budget earmarks $556 million to strengthen the textile industry, supporting infrastructure, jobs and manufacturing growth.
The Uttar Pradesh government has set aside ₹5,041 crore (around USD 556 million) in its 2026–27 state budget to boost the textiles and village industries sector, highlighting its emphasis on employment-driven manufacturing and traditional industries as part of wider industrial development.
Of the total allocation, ₹4,423 crore (approximately USD 488 million) has been earmarked for the Atal Bihari Vajpayee Powerloom Bunker Vidyut Flat Rate Yojana. The scheme provides subsidized electricity to handloom and powerloom weavers, a move aimed at cutting production costs, improving earnings and strengthening the competitiveness of textile clusters across Uttar Pradesh. The government has set a target of creating 30,000 new jobs in the textile sector during the next financial year.
To further encourage investment and capacity expansion, ₹150 crore has been allocated under the Uttar Pradesh Textile and Garmenting Policy-2022. The funding is intended to support modernization, attract new investors and promote value addition in garment and apparel manufacturing.
The budget also places strong emphasis on village and traditional industries. Under the Mukhyamantri Gramodyog Rozgar Yojana, the state plans to facilitate bank loans worth ₹40 crore to establish 800 new units, which are expected to generate around 16,000 jobs in rural areas. Additionally, ₹10 crore has been provided for the Pt Deendayal Gramodyog Rozgar Yojana to offer interest subsidies on loans, helping small rural entrepreneurs access affordable credit.
Officials said these combined initiatives are designed to strengthen the rural enterprise ecosystem, preserve traditional skills and ensure more inclusive economic growth across the state.