Our Policies

GO regarding 10% Bonus for SHG's affected by disaster
Uttarakhand, a land of possibilities

Uttarakhand has emerged as one of the fastest growing states in the country. The contribution of Industrial sector has been most prominent in this growth. While the State was able to attract substantial investment in some of the large industries, but in terms of employment generation the role of MSMEs is much more significant even with comparatively smaller investments. In view of the physical and geographical terrain of state MSMEs sector plays an important role in overall and inclusive growth of Uttarakhand. The importance of Micro, Small and Medium Enterprises (MSMEs) and their contribution to the economic and social development of state can not be overemphasized.

MSMEs sector is the largest employer after agriculture in Indian economy and it has exhibited higher growth potential in employment generation, particularly when the employment in the agriculture is stagnant and employment in large manufacturing sector is decreasing.

With the majority of the enterprises located in rural areas, MSMEs provide non farm employment to all the rural youth and encourage entrepreneurship within them.


Government of Uttarakhand has sanctioned the MSME Policy-2015 for promoting investment in the MSME sector through incentivising MSMEs. The policy aims at utilising local resources, generating employment opportunities, and promoting self-employment and skill development in the youth.

The policy shall remain in effect till 31st March 2020. Fiscal incentives and other benefits of this policy shall be available to the eligible enterprise from the commencement of production up to a maximum of 10 years or 31st March 2025, whichever is earlier.


i. Self-employment and Entrepreneurship Day- Last Friday of every month is being convened as Self-employment and Entrepreneurship Day in all districts. Officers from all related departments, banks and other organisations are present to provide information and advise the entrepreneurs. State Level Industries Associations and heads of all the concerned departments meet in the Directorate of Industries. Potential investors are also invited.

ii. Chief Ministers Self Employment Scheme on the pattern of erstwhile Prime Ministers Rojgar Yojana (PMRY)- Micro enterprises in industry, services and business sectors will be provided smaller loans up to Rs. 5 lakh for manufacturing and Rs. 3 lakh for business and service sector through the banks. Margin Money Assistance will be provided in urban areas@15 to 25 percent and 25 to 35 percent in rural areas.

Upcomimg Special Scheme For Promoting Women Entrepreneurship (Nav Disha Yojana):

A special scheme of providing 25% capital subsidy (maximum Rs. 25 lacs and interest subsidy @ 6% (maximum Rs. 5 lacs per unit per annum) has been approved to encourage women entrepreneurship in manufacturing as well as services sector.


UHHDC has been constituted with the sole idea of preserving the rich culture and tradition of the state and develop and promote the handlooms and handicrafts commercially. UHHDC also plays an important role in generating sustainable employment opportunities in this sector.

UHHDC under the Industry Department is an apex body for complete integration and development of the handlooms and handicrafts. It is also a nodal agency of Industry Department for various fairs/ exhibitions and publicity. UHHDC acts as a facilitator to motivate guide and organize artisans and provide common platforms for direct interaction between creators and buyers and connoisseurs of art.

Uttarakhand is the unrivalled production house of wollen handlooms, cotton handlooms, silk products and textiles made of natural fibres. The woolen products produced in Uttarakhand are primarily made using Pashmina wool and wool from Angora rabbit. Both have tremendous demand in the international market. The silk products are mainly prepared using high quality silk like Mulberry or Tassar silk. More than 40 natural fibres found in Uttarakhand are used to create innovative combinations in cotton.

Besides the handlooms, the handicrafts of Uttarakhand are a rare combination of art and utility. The beauty of the woodworks, copperwares, waxworks and the traditional art of Aipan is unmatched.

To commercially promote the handlooms and handicrafts of the state, UHHDC under the brand name Himadri sells the indigenous products in retail showrooms with the same name. The Himadri Emporiums are window to Uttarakhand's art, culture and rich heritage. These are strategically located in all the important towns of Uttarakhand besides the capital city of Delhi.

Integrated Development & Promotion Of Handicraft Scheme

A project of Integrated Development & Promotion of Handicraft for the benefit of Schedule Caste (14580 nos.) and Schedule Tribe (9720 nos.) artisans in Uttarakhand has been approved by the DC (Handicraft), Govt. of India for 15 blocks of the state. The project is being implemented by UHHDC.

Different Policies Of Government Of India Facilitated By MSME Department, Uttarakhand

Govt. of Uttarakhand is encouraging the MSME sector through various schemes and policies of the Department Of Industrial Planning And Promotion, Govt. of India, D.C MSME and Ministry Of Textile, Govt. of India.

1. P.M.E.G.P (Govt. of India)

In association with Khadi And Village Commission, Khadi And Village Board of Uttarakhand, the Department of MSMEs is implementing PMEGP schemes at district level through DIC's to provide self-employment.

2. Central Capital Investment Subsidy (Govt. of India)

All new industries in the notified location would be eligible for capital investment subsidy@15% of their investment in plant and machinery subject to a ceiling of Rs. 30 lacs.

3. Freight subsidy scheme (Govt. of India)

Under this scheme 75% expenditure of total transportation cost (as per norms) of raw material and finished goods from nearest railway station to industrial unit is reimbursed.

Click here for detailed versions of various policies

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