Uttar Pradesh has stepped up efforts to diversify its exports amid the challenge of the 50% U.S. tariffs that came into effect from August 27 this year. Our State’s key industries- carpets, leather, textiles, and handicrafts, form an important part of India’s $86.5 billion exports to the United States. We see this challenge as an opportunity to build a stronger and more resilient export base for Uttar Pradesh.
As Uttar Pradesh’s Minister for Export Promotion, I want to assure that the State is adopting a comprehensive and multi-pronged approach to support our exporters. Through initiatives like One District One Product (ODOP), we have been extending financial assistance and providing artisans and small businesses with the skills and tools to meet international standards, while also strengthening global connectivity so that our products can access newer markets. Also, at this crucial juncture, the Government of Uttar Pradesh has rolled out the Export Promotion Policy 2025–30, a landmark initiative that expands the scope of assistance and introduces new incentives, ensuring that our businesses are better equipped to withstand tariff pressures, diversify into alternative markets, and seize emerging opportunities across the world.
The recent U.S. tariffs have created difficulties for several export sectors of Uttar Pradesh. Leather factories have reduced production due to lower orders from the U.S., while Bhadohi’s carpet industry — contributing nearly 60% of India’s carpet exports to the U.S. — now faces about a 35% cost disadvantage compared with competitors such as Vietnam, which may affect employment. Gems, jewellery, and textiles are also likely to see an impact, with industry estimates suggesting a possible decline of over $4 billion.
These tariffs add to existing challenges such as higher shipping costs due to distance from ports, the need for greater skilling support for artisans to meet global standards, and U.P.’s current share of about 4.89% in India’s total exports (2024-25). While the situation is challenging, I want to assure our exporters and stakeholders that we are addressing these issues with practical and timely solutions.
Financial aid
Uttar Pradesh has introduced a range of financial schemes under the new Export Promotion Policy 2025–30 to support exporters impacted by tariffs and to strengthen their presence in new markets such as Europe and Asia. These schemes provide wider and more practical assistance than before, ensuring that both large and small exporters can compete globally.
Through the enhanced Marketing Development Assistance (MDA), exporters now get reimbursements at the rate of 75% across categories, with a cap of up to ₹25 lakh per exporter per year, including support for participation in international, domestic, and virtual trade fairs, as well as reimbursement for stall costs, airfare, publicity, certifications, and sending product samples. This will help our exporters showcase their products widely, build international networks, and diversify beyond the U.S. market.
Logistics support
As a landlocked State, U.P.’s exporters face higher transport costs to reach seaports. To ease this burden, the new policy provides 30% freight assistance up to ₹30 lakh per exporter annually, including air freight support up to ₹10 lakh. Special incentives have also been introduced for small exporters using LCL shipments, so they too can access global markets competitively. These steps will reduce logistics costs and help our exporters overcome the landlocked disadvantage.
To strengthen our exporters in the face of global challenges, the policy provides 30% reimbursement of ECGC premiums up to ₹5 lakh annually, a one-time 75% support on e-commerce onboarding fees capped at ₹3 lakh, and 75% reimbursement of postage charges through Dak Ghar Niryat Kendras up to ₹1 lakh per year. These measures reduce risks, cut costs, and open new global channels for Uttar Pradesh’s exporters.
To drive expansion and new investments, the policy introduces performance-linked rewards of 1% on year-on-year incremental export growth, up to ₹20 lakh annually per exporter. Further, new export-oriented projects will be supported with a capital subsidy of 40% of project cost, capped at ₹10 crore. These measures encourage both scaling of existing enterprises and the setting up of fresh, export-led industries in Uttar Pradesh.
Empowering artisans
Launched in 2018, the One District One Product (ODOP) scheme has become a strong driver of growth by promoting the unique products of all 75 districts of Uttar Pradesh—be it Banarasi sarees or Moradabad brassware.
Through skilling and provision of modern tools, the scheme ensures that our artisans produce quality goods aligned with international standards. In FY 2024-25 alone, 1,829 projects worth ₹1.06 crore were approved under ODOP. This initiative is not only enhancing production standards but also helping our artisans tap into emerging markets like Southeast Asia, Europe etc. Complementing this, the new U.P. MSME Audyogik Aasthan Prabandhan Policy offers further relief to the MSME sector. Nearly 700 acres are being developed as MSME parks, with land allotment to be facilitated through the GeM portal at a reserve price of ₹2,500 per sq. metre in central U.P. and ₹2,000 per sq. metre in the Bundelkhand region.
Building connections
The government under 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 today has four international airports and nine domestic airports, with the upcoming Jewar airport poised to be a game-changer. Once operational, it will have an initial cargo capacity of 1 lakh tonnes, significantly reducing shipment costs and transit times for products such as handicrafts and agritech goods..
At the same time, platforms like the Uttar Pradesh International Trade Show (UPITS) are strengthening our exporters’ linkages with global buyers. The inaugural edition connected entrepreneurs with buyers from Germany, the UK, Malaysia, and other nations, reducing overdependence on single markets. UPITS 2025 is set to build on this success with larger participation, greater product showcasing, and deeper engagement with international buyers, making it a flagship event for promoting Uttar Pradesh’s exports to the world.
$1-trillion goal
Despite global headwinds and the challenge ofU.S. tariffs, Uttar Pradesh is determined to emerge as a leading export hub.Through financial assistance, the ODOP initiative, improved connectivity, and focused skilling of artisans, we are strengthening the backbone of our export ecosystem. The recently launched U.P. Export Promotion Policy 2025–30, along with dedicated policies for footwear, leather, non-leather, and MSMEs, is attracting foreign investment and giving industries confidence to expand. These efforts not only create jobs and boost foreign exchange earnings but also pave way for U.P.’s $1 trillion economy vision.
We are confident that by turning challenges into opportunities, the state’s exports will continue to drive growth and prosperity for our people.
(The writer is U.P.’s Minister for Industrial Development, Export and Investment Promotion)
Published – October 12, 2025 06:04 am IST
