Uttar Pradesh Micro, Small and Medium Enterprises Promotion Policy-2017
Sector Overview :
Uttar Pradesh, India's expansive state, stands as a significant economic powerhouse. This sector, crucial for regaining momentum and capturing new investment avenues post-pandemic, is central to realising Uttar Pradesh's vision of becoming a trillion-dollar economy.
MSME entrepreneurs and investors are thus invited to explore and leverage the myriad opportunities presented by this policy, contributing to mutual prosperity and growth.
Sector Overview
MSMEs in Uttar Pradesh:  A robust foundation of over 90 lakh registered and unregistered MSMEs, contributing to 45% of the state's exports and a significant Rs 890 billion in exports for FY17-18. This vast network spans diverse manufacturing sectors including engineering goods, carpets, leather products, apparel, plastics, and glassware.
One District One Product (ODOP) Scheme:   An innovative move to bolster local artisans and craftsmen across the state, mapping 75 unique products to respective districts to fortify exports and preserve cultural heritage.
  • Target to achieve an annual growth rate of 15% in development of MSME industries.
  • Target to generate employment with annual growth rate of 15%.
  • Expansion and technical upgradation of the existing MSME industries.
  • Providing support to the new MSME for setting up the industries.
  • Create a favourable business environment for the MSME.
  • Capital Interest Subsidy, Infrastructure Interest Subsidy, Industrial Quality Development subsidy.
  • Exemption : Land Use conversion for converting agricultural land to Industrial land of agriculture land development authorities, Stamp Duty, Electricity duty exemption to new units.
  • EPF Reimbursement, Electricity Charges Reimbursement.
  • SPV Formation : The Government will provide grant of equal proportion of contribution by the allotees.
Investment and Fiscal Incentives
  • Developing Gram Sabha land of 5 acres or more as an industrial area.
  • Developing industrial areas on either side of the Expressways (up to 5 Kms on either side).
  • 100% reimbursement of employer's EPF contribution for 5 years.
  • Promoting industry 4.0 among MSMEs
  • Micro, small and medium enterprises in the Bundelkhand region are eligible for capital subsidy of 25%, 20% and 15%, respectively.
  • 50% interest subsidy, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit for Micro units.
  • 100% stamp duty exemption in the Purvanchal and Budelkhand region, • fiscal assistance of up to 75% (maximum Rs 5 Lakh) to MSMEs, as reimbursement for attain quality standards like ZED, GMP, Hallmark etc.
  • Financial assistance of 75% (maximum Rs.10 lakh) will be provided for attaining patents and GI tags.