Uttar Pradesh unveils 2022 textile policy with subsidies, infrastructure and export support
The Uttar Pradesh government has launched the 2022 Textile and Garmenting Policy, offering capital, land, interest and infrastructure incentives to attract investment across the textile value chain.
Uttar Pradesh's 2022 Textile and Garmenting Policy supersedes the 2017 incentive scheme and covers the full textile value chain, from silk farming to garment manufacturing and technical textiles. It offers a standard capital subsidy of 25% of eligible plant and machinery investment, rising to 35% for projects in Purvanchal and Bundelkhand, with a ceiling of Rs 100 crore per unit, plus subsidies for worker housing, environmental infrastructure and testing facilities.
Financial incentives also include 60% reimbursement of loan interest for up to seven years, a 25% land-cost refund (capped at 10% of project cost), full stamp-duty exemption in most districts, and a decade of electricity-duty relief. Export-oriented garment makers can claim phased freight reimbursements for five years, and the policy encourages the creation of integrated textile parks of at least 25 acres, linking them to the PM MITRA programme.
While the state reports that projects under the policy have created nearly 20,000 jobs over five years, detailed figures on applications, approvals and subsidy payouts are not publicly aggregated. Investors must meet employment thresholds and front-load expenditures before receiving reimbursements, and must comply with environmental and power-supply requirements.
