MSME Promotion Policy

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The Uttar Pradesh Micro, Small & Medium Enterprises Promotion Policy 2022 has been instrumental in positioning Uttar Pradesh as a leading state in MSME growth, significantly contributing to employment, exports, and GDP.

  • About Capital Subsidy:

o Micro, small, and medium enterprises in the Bundelkhand and Purvanchal regions are eligible for capital subsidies of 25%, 20%, and 15%, respectively.

o In the Madhyanchal and Paschimanchal regions, the subsidies are 20%, 15%, and 10%, respectively.

o The subsidy is capped at INR 4 crore per unit, with additional benefits for SC/ST and women entrepreneurs.

  • Interest Subsidy: Micro units receive a 50% interest subsidy, payable annually for five years, up to INR 25 lakh per unit.

o SC/ST and women-led enterprises are eligible for a 60% interest subsidy under the same terms.

  • Infrastructure Interest Subsidy: Industrial parks with a minimum area of 10 acres qualify for a 50% infrastructure interest subsidy, capped at INR 2 crore annually, payable over seven years.
  • Stamp Duty Exemptions: MSMEs are eligible for 100% stamp duty exemption in the Purvanchal and Bundelkhand regions, and 75% in the Madhyanchal and Paschimanchal regions (except Gautam Budh Nagar and Ghaziabad, where it's 50%).
  • Women entrepreneurs receive 100% stamp duty exemption across the state.
  • Quality Improvement Measures: To promote high-quality production, MSMEs are encouraged to attain certifications like ZED, GMP, Hallmark, etc.
o Financial assistance of up to 75% is provided as reimbursement for obtaining these certifications.

o This policy aims to foster local entrepreneurship, reduce migration, and ensure inclusive growth, aligning with initiatives like Make in India and the state's One District One Product (ODOP) scheme



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