Rural Entrepreneurship Gains Momentum: UP Government Expands Village Industry Employment Schemes

Anusha Jain | Feb 14, 2026, 10:01 IST
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Uttar Pradesh is accelerating rural entrepreneurship through expanded village industry employment schemes. With 800 new units planned and ₹10 crore allocated for financial support, the government aims to create 16,000 jobs, strengthen existing enterprises, reduce migration, and promote self-reliant rural growth.
UP Government Expands Rural Employment Schemes to Create 16,000 Jobs
The Uttar Pradesh government has intensified its efforts to strengthen rural entrepreneurship by expanding two major initiatives — the Chief Minister Village Industries Employment Scheme and the Pandit Deendayal Village Industries Employment Scheme. These programs are designed to accelerate self-employment opportunities, promote small-scale enterprises, and strengthen the rural economy.

For the financial year 2026–27, the Khadi and Village Industries Department has set a target to establish 800 new units under the Chief Minister Village Industries Employment Scheme. Through this initiative, nearly 16,000 employment opportunities are expected to be created across the state, significantly benefiting rural youth and aspiring entrepreneurs.

800 New Units to Be Established Through Subsidized Bank Loans

Under the Chief Minister Village Industries Employment Scheme, financial support will be extended through bank-linked credit facilities amounting to approximately ₹40 crore. The scheme focuses on enabling young individuals in rural areas to establish micro and small enterprises with access to subsidized loans.

In addition to financial assistance, beneficiaries will receive training, technical guidance, and institutional support to ensure sustainable operations. By promoting village-based industries, the government aims to generate local employment and reduce migration from rural regions to urban centers. The initiative is expected to encourage innovation in traditional crafts, agro-based industries, and cottage enterprises.

₹10 Crore Allocation to Strengthen Existing Rural Enterprises

To further reinforce rural industrial growth, the government has earmarked ₹10 crore under the Pandit Deendayal Village Industries Employment Scheme for 2026–27. This scheme primarily provides interest subsidies on bank loans to already established rural units, helping reduce financial burdens and enabling business expansion.

The program complements broader initiatives such as the Prime Minister’s self-employment programs and the “One District One Product” (ODOP) strategy. By offering financial relief and stability to rural enterprises, the scheme ensures long-term sustainability and competitiveness.

Driving Self-Reliance and Vision 2047

Together, these schemes reflect the state’s broader commitment to building a self-reliant rural economy. By promoting entrepreneurship, supporting micro-industries, and creating thousands of employment opportunities, the Uttar Pradesh government is laying a strong foundation for inclusive growth. These measures align with the long-term vision of a developed Uttar Pradesh by 2047, where rural prosperity and innovation play a central role in economic transformation.

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