UP Textile & Garmenting Policy 2022: Complete Guide
What Is the Policy?
The Uttar Pradesh Textile & Garmenting Policy, 2022 covers spinning, weaving, knitting, processing, garmenting, made-ups, technical textiles, machine carpets, and textile park development. It is administered by the Handloom & Textile Industry Department. Readymade garments is the ODOP (One District One Product) product for Gautam Buddh Nagar, making this policy โ alongside ODOP schemes โ the standard package for the district's garment cluster, one of the largest apparel export bases in north India.
Key Incentives
| What | Detail |
|---|---|
| Capital subsidy | On plant & machinery |
| Interest subsidy | On term loans |
| Stamp duty exemption | On land/lease deeds |
| Electricity duty exemption | On qualifying consumption |
| EPF reimbursement | Employer's contribution โ unusually valuable here given the sector's labour intensity |
| Skill development support | For workforce training |
| Enhanced garmenting/made-ups support | Higher employment-linked support, reflecting the segment's job intensity |
Eligibility
- New units and expansions in spinning, weaving, knitting, processing, garmenting, made-ups, technical textiles, and machine carpets
- Private textile park developers
- Technical textiles units โ aligned with the National Technical Textiles Mission
How Does This Interact With the Export Promotion Policy?
Garment exporters routinely claim capital/interest subsidy under this policy and freight/marketing assistance under the UP Export Promotion Policy 2025โ30 at the same time โ this is permitted because the two policies cover different incentive heads, not the same one twice. The policy also converges with Central schemes: PM MITRA parks, ATUFS/successor schemes, and the PLI for textiles.
How to Apply
- Apply through Nivesh Mitra
- For garment/made-ups units, also check ODOP margin money and toolkit schemes, which typically run alongside this policy without duplicating the same head
- For export-oriented units, separately check the Export Promotion Policy 2025โ30 for freight and marketing support
Frequently Asked Questions
Can I claim both this policy and ODOP for the same garment unit?
Yes, typically โ ODOP margin money, CFC, and toolkit schemes run alongside this policy, subject to no duplication of the same incentive head.
Does this policy cover technical textiles?
Yes, explicitly โ and it's aligned with the National Technical Textiles Mission for that segment.
Setting up or expanding a textile/garment unit in UP?
ClaimDesk (A NorthStar Advisors brand, Noida) helps you stack this policy correctly with ODOP and the Export Promotion Policy without duplicate claims. The first conversation is completely free.
MSMEUP.com is independent information & tools โ free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional โ MSMEUP's guides and tools work the same with or without it.
Official portal: niveshmitra.up.gov.in Administered by: Handloom & Textile Industry Dept. Last reviewed: Aug 2026
This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.