7 months ago
2
Uttar Pradesh has stepped up efforts to diversify its exports amid the situation of the 50% U.S. tariffs that came into effect from August 27 this year. Our State’s cardinal industries- carpets, leather, textiles, and handicrafts, signifier an important portion of India’s $86.5 cardinal exports to the United States. We spot this situation arsenic an accidental to physique a stronger and much resilient export basal for Uttar Pradesh.
As Uttar Pradesh’s Minister for Export Promotion, I privation to guarantee that the State is adopting a broad and multi-pronged attack to enactment our exporters. Through initiatives similar One District One Product (ODOP), we person been extending fiscal assistance and providing artisans and tiny businesses with the skills and tools to conscionable planetary standards, portion besides strengthening planetary connectivity truthful that our products tin entree newer markets. Also, astatine this important juncture, the Government of Uttar Pradesh has rolled retired the Export Promotion Policy 2025–30, a landmark inaugural that expands the scope of assistance and introduces caller incentives, ensuring that our businesses are amended equipped to withstand tariff pressures, diversify into alternate markets, and prehend emerging opportunities crossed the world.
The caller U.S. tariffs person created difficulties for respective export sectors of Uttar Pradesh. Leather factories person reduced accumulation owed to little orders from the U.S., portion Bhadohi’s carpet manufacture — contributing astir 60% of India’s carpet exports to the U.S. — present faces astir a 35% outgo disadvantage compared with competitors specified arsenic Vietnam, which whitethorn impact employment. Gems, jewellery, and textiles are besides apt to spot an impact, with manufacture estimates suggesting a imaginable diminution of implicit $4 billion.
These tariffs adhd to existing challenges specified arsenic higher shipping costs owed to region from ports, the request for greater skilling enactment for artisans to conscionable planetary standards, and U.P.’s existent stock of astir 4.89% successful India’s full exports (2024-25). While the concern is challenging, I privation to guarantee our exporters and stakeholders that we are addressing these issues with applicable and timely solutions.
Financial aid
Uttar Pradesh has introduced a scope of fiscal schemes nether the caller Export Promotion Policy 2025–30 to enactment exporters impacted by tariffs and to fortify their beingness successful caller markets specified arsenic Europe and Asia. These schemes supply wider and much applicable assistance than before, ensuring that some ample and tiny exporters tin vie globally.
Through the enhanced Marketing Development Assistance (MDA), exporters present get reimbursements astatine the complaint of 75% crossed categories, with a headdress of up to ₹25 lakh per exporter per year, including enactment for information successful international, domestic, and virtual commercialized fairs, arsenic good arsenic reimbursement for stall costs, airfare, publicity, certifications, and sending merchandise samples. This volition assistance our exporters showcase their products widely, physique planetary networks, and diversify beyond the U.S. market.
Logistics support
As a landlocked State, U.P.’s exporters look higher transport costs to scope seaports. To easiness this burden, the caller argumentation provides 30% freight assistance up to ₹30 lakh per exporter annually, including aerial freight enactment up to ₹10 lakh. Special incentives person besides been introduced for tiny exporters utilizing LCL shipments, truthful they excessively tin entree planetary markets competitively. These steps volition trim logistics costs and assistance our exporters flooded the landlocked disadvantage.
To fortify our exporters successful the look of planetary challenges, the argumentation provides 30% reimbursement of ECGC premiums up to ₹5 lakh annually, a one-time 75% enactment connected e-commerce onboarding fees capped astatine ₹3 lakh, and 75% reimbursement of postage charges done Dak Ghar Niryat Kendras up to ₹1 lakh per year. These measures trim risks, chopped costs, and unfastened caller planetary channels for Uttar Pradesh’s exporters.
To thrust enlargement and caller investments, the argumentation introduces performance-linked rewards of 1% connected year-on-year incremental export growth, up to ₹20 lakh annually per exporter. Further, caller export-oriented projects volition beryllium supported with a superior subsidy of 40% of task cost, capped astatine ₹10 crore. These measures promote some scaling of existing enterprises and the mounting up of fresh, export-led industries successful Uttar Pradesh.
Empowering artisans
Launched successful 2018, the One District One Product (ODOP) strategy has go a beardown operator of maturation by promoting the unsocial products of each 75 districts of Uttar Pradesh—be it Banarasi sarees oregon Moradabad brassware.
Through skilling and proviso of modern tools, the strategy ensures that our artisans nutrient prime goods aligned with planetary standards. In FY 2024-25 alone, 1,829 projects worthy ₹1.06 crore were approved nether ODOP. This inaugural is not lone enhancing accumulation standards but besides helping our artisans pat into emerging markets similar Southeast Asia, Europe etc. Complementing this, the caller U.P. MSME Audyogik Aasthan Prabandhan Policy offers further alleviation to the MSME sector. Nearly 700 acres are being developed arsenic MSME parks, with onshore allotment to beryllium facilitated done the GeM portal astatine a reserve terms of ₹2,500 per sq. metre successful cardinal U.P. and ₹2,000 per sq. metre successful the Bundelkhand region.
Building connections
The authorities nether Chief Minister Yogi Adityanath, with the guidance of Prime Minister Narendra Modi, is committed to creating world-class infrastructure that makes exports seamless and cost-effective. Uttar Pradesh contiguous has 4 planetary airports and 9 home airports, with the upcoming Jewar airdrome poised to beryllium a game-changer. Once operational, it volition person an archetypal cargo capableness of 1 lakh tonnes, importantly reducing shipment costs and transit times for products specified arsenic handicrafts and agritech goods..
At the aforesaid time, platforms similar the Uttar Pradesh International Trade Show (UPITS) are strengthening our exporters’ linkages with planetary buyers. The inaugural variation connected entrepreneurs with buyers from Germany, the UK, Malaysia, and different nations, reducing overdependence connected azygous markets. UPITS 2025 is acceptable to physique connected this occurrence with larger participation, greater merchandise showcasing, and deeper engagement with planetary buyers, making it a flagship lawsuit for promoting Uttar Pradesh’s exports to the world.
$1-trillion goal
Despite planetary headwinds and the situation of U.S. tariffs, Uttar Pradesh is determined to look arsenic a starring export hub. Through fiscal assistance, the ODOP initiative, improved connectivity, and focused skilling of artisans, we are strengthening the backbone of our export ecosystem. The precocious launched U.P. Export Promotion Policy 2025–30, on with dedicated policies for footwear, leather, non-leather, and MSMEs, is attracting overseas concern and giving industries assurance to expand. These efforts not lone make jobs and boost overseas speech net but besides pave mode for U.P.’s $1 trillion system vision.
We are assured that by turning challenges into opportunities, the state’s exports volition proceed to thrust maturation and prosperity for our people.
(The writer is U.P.’s Minister for Industrial Development, Export and Investment Promotion)
