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Uttar Pradesh · Uttar Pradesh GK · Economy and administration

Uttar Pradesh: Industry and MSMEs

Hindi · हिंदी में पढ़ें

Shishya's note: drafted with AI only from the official documents listed below, then checked against them (every number, date and name). Figures are as those documents print them, for the year they name.

Uttar Pradesh's main industries include cement, vegetable oil, textiles, cotton yarn, sugar, jute, locks, carpet, brassware, glassware, bangles and marble inlay. The state's Budget 2026-27 proposes ₹27,103 crore for infrastructure and industrial development, along with large provisions for MSMEs, textiles and IT. The budget booklet ranks UP 1st in GST registration and 2nd in MSME registrations (as on Feb 10, 2026).

Traditional Industries and ODOP

  • Handicrafts: chikan-work, embroidery, furniture, clay-toys, carpet weaving, silk, bangles and brassware.
  • One District One Product (ODOP): a flagship programme of the state government to promote each district's unique traditional products.
  • ODOP supports artisans and entrepreneurs through financial assistance, skill development, branding, infrastructure and export promotion.

Industrial Development (Budget 2026-27)

  • Mukhyamantri Industrial Area Expansion and New Industrial Area Promotion Scheme: ₹5,000 crore.
  • Atal Infrastructure Mission: ₹2,000 crore for infrastructure development.
  • Incentive Policy-2023 for FDI and Fortune-500 company investment: ₹100 crore.
  • Swami Vivekanand Yuva Sashaktikaran Yojana (tablets and smartphones): ₹2,374 crore.
  • Defence Industrial Corridor: MoUs signed for 200 defence industries, expected to bring ₹35,280 crore of investment and direct jobs for about 53,263 people.

MSMEs

  • MSME schemes: ₹3,822 crore, 19 percent higher than 2025-26. The budget states that UP's MSME sector ranks highest in the entire country.
  • Sardar Vallabh Bhai Patel Employment and Industrial Zone: a new scheme with ₹575 crore.
  • Mukhyamantri Yuva Udyami Vikas Abhiyan: ₹1,000 crore, with a target of 1 lakh micro-enterprises every year.
  • Mukhyamantri Yuva Swarojgar Yojana: ₹225 crore.
  • One District One Cuisine: a new scheme with ₹75 crore.

Handloom, Textiles and Village Industries

  • Handloom and Textile Industry schemes: about ₹5,041 crore; target of 30,000 jobs in textiles in 2026-27.
  • Atal Bihari Vajpayee Powerloom Bunker Vidyut Flat Rate Yojana for handloom and power loom weavers: ₹4,423 crore.
  • Uttar Pradesh Textile and Garmenting Policy-2022: ₹150 crore.
  • Mukhyamantri Gramodyog Rozgar Yojana (2026-27): jobs for 16,000 people through ₹40 crore of bank loans to 800 units.
  • Pt. Deendayal Gramodyog Rozgar Yojana: ₹10 crore for interest subsidy to rural units.
  • Kambal Utpadan Kendra, Khajni (Gorakhpur): ₹7 crore 50 lakh for modernisation.
  • Mati Kala Samanvit Vikas Karyakram (UP Mati Kala Board) for traditional potters: ₹13 crore.

IT, Electronics and AI

  • IT and Electronics schemes: ₹2,059 crore.
  • Uttar Pradesh AI Mission (UP-AIM): ₹225 crore, to speed up AI adoption across governance, economy and society; it has 8 pillars, from AI compute to safe and responsible AI.
  • AI Labs in 49 ITIs, an AI Centre of Excellence and India AI Data Labs: ₹32 crore 82 lakhs (with the India AI Mission).
  • Cyber Security Operations Centre: ₹95 crore 16 lakh.
  • UP Electronics Components Manufacturing Policy - 2025: targets $50 billion of electronics production and 10 lakh jobs by 2030.
  • Data centres: proposed capacity of 644 MW with Rs. 21,343 crore of investment by June 2025.
  • AI Cities: 70 acres allocated in Lucknow for AI infrastructure.
  • Digital transactions rose from 122.84 crore (2017-18) to 1,380.91 crore (2024-25).

Investment Climate

  • UPSIDA made a record 798 land allocations in 2024-25, attracting 60,000 crore+ of investment and 52,000+ jobs.
  • UP is an Achiever State in Ease of Doing Business, with 33 sectoral policies, the Nivesh Sarthi portal and 15 lakh crore of investment grounded in the last 8 years.
  • Startups: 16,000+ DPIIT-recognised; 18,568 active (December 2025), nearly 8,000 led by women; 8 unicorns, with a target of 20 by 2030.
  • StartInUP: 1888+ recognised startups and an INR 1,000 Cr Fund of Funds.
  • PLEDGE Parks: 12 sanctioned, with plots being allotted in six locations over 136 acres.
  • Film City: underway in Sector-21 on 230 acres under PPP; a further 1510 acres has been allotted.
  • Sugamya Vyapar Bill (2025): decriminalises 99% of criminal provisions in 13 state acts.
  • GCC Policy (enacted 2025) gives incentives and capital and operational support. UP ranks 4th in NITI Aayog's Export Preparedness Index 2024.

Official sources (read on the date shown)

Topic test: Industry and MSMEs

Shishya practice: 5 questions whose answers are in the note above — not questions from any past paper. Your first 2 answers need no account; then sign up free to finish. Nothing you pick is saved.

  1. Question 1 of 5

    According to the Budget 2026-27, what is the proposed amount for infrastructure and industrial development in Uttar Pradesh?

  2. Question 2 of 5

    What is the allocation for the Mukhyamantri Industrial Area Expansion and New Industrial Area Promotion Scheme in the 2026-27 budget?

  3. Question 3 of 5

    How many defence industries have MoUs been signed for under the Defence Industrial Corridor in Uttar Pradesh?

  4. Question 4 of 5

    Under the Mukhyamantri Yuva Udyami Vikas Abhiyan, how many micro-enterprises are targeted every year?

  5. Question 5 of 5

    What data-centre capacity had Uttar Pradesh achieved (proposed capacity) by June 2025?