Sun Oct 12 00:34:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:

**Uttar Pradesh Bets Big on Export Diversification Amid US Tariff Hikes**

**LUCKNOW, October 12, 2025** – Uttar Pradesh (UP) is aggressively pursuing a diversification strategy to mitigate the impact of newly imposed 50% U.S. tariffs, which came into effect on August 27th. The state government is framing the challenge as an opportunity to build a more resilient export economy.

Key sectors like carpets, leather, textiles, and handicrafts, crucial to India’s $86.5 billion exports to the U.S., are facing headwinds. The carpet industry in Bhadohi, which accounts for 60% of India’s carpet exports to the US, is facing a 35% cost disadvantage versus competitors like Vietnam. UP’s share of total India exports is about 4.89% as of 2024-25. Industry estimates suggest a potential $4 billion decline due to the tariffs.

According to Uttar Pradesh’s Minister for Industrial Development, Export and Investment Promotion, the state is implementing a multi-pronged approach, anchored by the new Export Promotion Policy 2025-30. This policy expands assistance and introduces new incentives to help businesses withstand tariff pressures and access alternative markets.

“We are adopting a comprehensive approach to support our exporters,” stated the Minister. “Through initiatives like One District One Product (ODOP), we’re providing financial aid and equipping artisans and small businesses with the skills and tools to meet international standards. We’re also strengthening global connectivity to access new markets.”

The Export Promotion Policy 2025-30 includes several key initiatives:

* **Enhanced Marketing Development Assistance (MDA):** Reimbursements of 75% on various expenses, capped at ₹25 lakh per exporter per year, including support for participation in trade fairs.
* **Freight Assistance:** 30% freight assistance up to ₹30 lakh per exporter annually to offset the disadvantage of being a landlocked state.
* **ECGC Premium Reimbursement:** 30% reimbursement of ECGC premiums up to ₹5 lakh annually.
* **E-commerce and Postage Support:** Subsidies for e-commerce onboarding and postage charges.
* **Performance-linked rewards**: Performance linked rewards of 1% on year-on-year incremental export growth.
* **Capital Subsidy**: New export oriented projects will be supported with a capital subsidy of 40% of project cost, capped at ₹10 crore.

The ODOP scheme, launched in 2018, continues to drive growth by promoting unique products from each of UP’s 75 districts. In FY 2024-25, 1,829 projects worth ₹1.06 crore were approved under ODOP. Complementing this, the new U.P. MSME Audyogik Aasthan Prabandhan Policy offers further relief to the MSME sector. The government is developing nearly 700 acres as MSME parks.

Infrastructure improvements are also a key element of the strategy. Uttar Pradesh boasts four international and nine domestic airports, with the upcoming Jewar airport set to significantly boost cargo capacity. The Uttar Pradesh International Trade Show (UPITS) strengthens linkages with global buyers.

The Minister affirmed the government’s commitment to its “Make in UP” initiative and the vision of a $1 trillion state economy, driven by robust exports.

**(The Hindu)**

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