Lucknow, September 15, 2026: The Cabinet, chaired by Chief Minister Yogi Adityanath on Tuesday, approved the Uttar Pradesh Toy Manufacturing Promotion Policy-2025.
The policy aims to establish Uttar Pradesh as a major hub for toy manufacturing, promote new industries, and increase employment opportunities in toy clusters. The policy will promote toy manufacturing, marketing, and technological upgrades in the state.
Finance Minister Suresh Kumar Khanna said, "Uttar Pradesh holds an important position, particularly in the field of toy manufacturing. The state contributes around 50 per cent of India’s exports of articles related to Indian festivals and festivities (HS 9505). Varanasi, Jhansi and Chitrakoot are renowned for their GI-tagged lacquerware and handmade wooden toys. The sector is an important source of employment for artisans, women and rural communities. By promoting toy manufacturing and marketing as key areas of development, the policy can utilise skilled, semi-skilled, and unskilled human resources more effectively. This will increase employment and skill development opportunities in toy clusters."
Incentives For Toy Manufacturing
Under the policy, toy manufacturing units will receive an incentive-based support framework. The policy will focus on providing land and infrastructure to support the expansion, diversification, and technological upgrades of existing industries.
Along with assistance for setting up new enterprises, the government will also support MSMEs and large industries. Special incentives will be provided to set up toy industries in Eastern Uttar Pradesh, Bundelkhand, and Madhyanchal regions. This will promote industrial activity in these regions and create local employment opportunities.
Support For MSMEs And Large Units
Under the Uttar Pradesh Toy Manufacturing Promotion Policy-2025, incentives will be provided to micro, small and medium enterprises as per the MSME classification, along with large and higher-category toy manufacturing units and toy cluster enterprises.
Eligible units in the MSME category will receive incentives prescribed under the Uttar Pradesh MSME Promotion Policy-2022 and, if it becomes ineffective, under the subsequent policy in force.
Meanwhile, new units established in the large and higher categories, as well as units undertaking expansion and diversification, will receive incentives under the proposed policy. These policies will be implemented through Invest UP.
Under the policy, eligible toy manufacturing units will receive the prescribed incentives once they begin commercial production. The proposal also includes provisions for front-end subsidy. This is expected to encourage the establishment and expansion of the state's toy industry.
Policy To Remain In Force Five Years
The Micro, Small and Medium Enterprises Department (MSME) of the Uttar Pradesh government will implement the policy. Incentives related to large and higher-category industries will be implemented through Invest UP.
The Uttar Pradesh Toy Manufacturing Promotion Policy-2025 will remain in force for five years from the date of its promulgation or until the government promulgates a new policy, whichever is earlier.
Projects receiving incentives under this policy will not be eligible for incentives under any other policy of the state government. However, incentives available under schemes and policies of the Government of India may be availed in addition to these.
Key Benefits Of The Policy
Help position Uttar Pradesh as a major hub for toy manufacturing.
Promote the establishment of industries in Eastern Uttar Pradesh, Bundelkhand and Madhyanchal.
Create additional employment opportunities in toy clusters.
Provide economic opportunities to artisans, women and rural communities.
Support expansion and technological upgradation of MSMEs and large industries.
Promote skill development in the field of toy manufacturing and marketing.
