Uttar Pradesh: Yogi Cabinet Approves Toy Manufacturing Policy To Boost Industry, Jobs In Eastern UP, Bundelkhand

Lucknow, September 15, 2026: Chief Minister Yogi Adityanath's Cabinet approved the Uttar Pradesh Toy Manufacturing Promotion Policy-2025 to bolster the toy industry and job creation in Eastern Uttar Pradesh, Bundelkhand, and Madhya Pradesh. The policy aims to establish the state as a prominent hub for toy manufacturing, support new industries, and increase employment prospects in toy clusters.

The initiative will facilitate marketing, technological advancements, and the upgrading of existing industries. Finance Minister Suresh Kumar Khanna emphasized Uttar Pradesh's crucial role, particularly in exports of festival-related goods (HS 9505). Regions like Varanasi, Jhansi, and Chitrakoot are known for their lacquerware and wooden toys.

The policy intends to maximize the use of skilled, semi-skilled, and unskilled labor, driving employment and skill development. Incentives will be provided to support land acquisition, infrastructure development, and the expansion of existing industries, as well as the establishment of new enterprises. Special incentives will be extended to industries in Eastern Uttar Pradesh, Bundelkhand, and Madhya Pradesh to stimulate economic activity in these areas.

Micro, small, and medium enterprises, along with larger units, will receive targeted incentives. The policy will be implemented by the MSME Department and Invest UP, remaining effective for five years or until a new policy is enacted, whichever occurs first. Projects receiving incentives will not be eligible for incentives from other state policies, though they can benefit from central government schemes.