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Jharkhand Micro, Small, and Medium Enterprises (MSME) Manufacturing Policy 2024-2030

Shaping the Future of Jharkhand's MSME

Jharkhand stands at the forefront of transforming into a global hub for Micro, Small, and Medium Enterprises (MSME) manufacturing, leveraging its abundant natural resources, strategic geographic advantage, and vibrant entrepreneurial culture. The **Jharkhand MSME Manufacturing Policy 2024-2030** charts a visionary path to foster an inclusive, sustainable, and dynamic ecosystem for MSMEs across the state. This forward-looking policy is structured to provide comprehensive incentives, cutting-edge infrastructure, and financial backing to empower MSMEs, driving substantial contributions to economic growth and job creation.

With a strong emphasis on technological advancements, eco-friendly practices, global export competitiveness, and inclusive development, Jharkhand envisions MSMEs as the cornerstone of its industrial expansion. The policy is equally committed to fostering equitable participation, empowering women entrepreneurs, SC/ST entrepreneurs, and individuals with disabilities, ensuring that the journey toward making Jharkhand a $1 trillion economy by 2034 is inclusive and transformative for all.

Industry-Specific Engagements
International Agritech Collaborations

Objectives

The Jharkhand MSME Manufacturing Policy 2024-2030 is driven by clear and ambitious objectives aimed at accelerating the state’s industrial transformation:

  • Promote MSME Growth: Propel the establishment of new MSME manufacturing units while supporting the expansion of existing ones across diverse sectors.
  • Support Sustainable Industrial Development: Drive the adoption of eco-friendly technologies, energy-efficient practices, and advanced manufacturing techniques among MSMEs.
  • Enhance Competitiveness: Equip MSMEs with the tools to thrive in global markets through innovation, technology integration, and export promotion.
  • Inclusive Growth: Empower women entrepreneurs, SC/ST communities, and individuals with disabilities, embedding inclusivity into Jharkhand’s industrial growth narrative.
  • Create Employment Opportunities: Create sustainable job opportunities across urban and rural areas by fostering MSME growth and implementing robust skill development programs.
  • Promote Innovation and R&D: Position Jharkhand as a leader in industrial innovation by encouraging MSMEs to invest in research and development, driving the creation of cutting-edge products and solutions.

Key Focus Areas

Infrastructure Development for MSMEs

Jharkhand is committed to creating world-class infrastructure for MSMEs, enabling seamless market access, affordable resources, and state-of-the-art facilities to drive industrial growth:

  • MSME Parks: Establishment of dedicated MSME manufacturing parks in every district, offering cost-effective, plug-and-play infrastructure to support new ventures and the expansion of existing businesses.
  • Common Facility Centers (CFCs): Development of industry-specific clusters with shared facilities for sectors such as food processing, textiles, auto components, pharmaceuticals, and electronics, empowering MSMEs with advanced manufacturing capabilities while optimizing operational costs.
  • Logistics and Supply Chain Infrastructure: Implementation of multimodal logistics parks with integrated transportation solutions, reducing supply chain expenses and ensuring smooth connectivity to both domestic and global markets.

Financial Assistance and Capital Support

To ease the financial burden on MSMEs, Jharkhand provides a robust package of subsidies and incentives designed to support new investments and business expansion:

  • Capital Investment Subsidy: Receive up to 30% subsidy on capital investments in plant and machinery for new and expanding MSMEs. Additional subsidies are available for enterprises owned by women, SC/ST entrepreneurs, and persons with disabilities.
  • Working Capital Assistance: Access interest-free or low-interest working capital loans for MSMEs in priority sectors like agriculture, food processing, and handicrafts, ensuring efficient cash flow management.
  • Interest Subsidy on Loans: Avail a 50% interest subsidy on loans for technology upgrades, plant expansion, and modernization, valid for 5 years, with a maximum benefit of ₹1 crore per unit.

Technology Upgradation and Modernization

To improve the global competitiveness of MSMEs, the policy emphasizes the adoption of advanced technologies, automation, and digital transformation.

  • Technology Purchase Assistance: A 50% subsidy is available for acquiring new technologies, machinery, or equipment, with an emphasis on high-growth sectors such as biotechnology, automotive, electronics, and renewable energy.
  • Industry 4.0 Adoption: Special incentives are provided for MSMEs implementing Industry 4.0 technologies, including automation, AI, robotics, and smart manufacturing. The subsidy covers up to 30% of technology costs, with a maximum limit of ₹1 crore.

R&D Grants for MSMEs: To drive innovation and the development of new products and processes, MSMEs in sectors like pharmaceuticals, electronics, and agricultural processing can receive a 50% grant on their R&D expenditure.

Export Promotion and Global Market Access

Jharkhand is dedicated to empowering MSMEs to become key players in the global market by providing export incentives, market access support, and opportunities for international branding.

  • Export Subsidy: MSMEs engaged in exports can avail up to a 30% subsidy to cover logistics, shipping, and international marketing expenses, easing their entry and competitiveness in global markets.
  • International Market Access Programs: Financial assistance, capped at ₹10 lakhs per year, is available for MSMEs to participate in global trade fairs, buyer-seller meets, and exhibitions, enabling them to showcase products and attract international buyers.
  • Global Product Certification: MSMEs can receive 100% reimbursement for obtaining international certifications such as ISO, CE, or FDA approval, ensuring their products meet global standards and boosting their export potential.

Employment Generation and Skill Development

The policy provides strong incentives for MSMEs that generate employment and invest in skill development, ensuring a skilled workforce for modern manufacturing processes.

  • Employment Subsidy: MSMEs will receive 100% reimbursement of the employer’s contribution to ESI and EPF for female employees and 75% reimbursement for male employees, for a period of 5 years, encouraging the hiring of local talent.
  • Skill Development Grants: MSMEs can avail up to a 50% subsidy on employee training costs, including technical certifications, vocational training, and on-the-job training, with a cap of ₹10 lakhs per unit.
  • Apprenticeship and Internship Support: MSMEs offering apprenticeship or internship programs will receive an annual subsidy of ₹1 lakh, promoting the training of local youth in advanced manufacturing skills.

Inclusive Growth Initiatives

Jharkhand’s MSME policy focuses on inclusivity by offering tailored incentives and support to marginalized groups, including women entrepreneurs, SC/ST entrepreneurs, and persons with disabilities.

  • Women Entrepreneurs: MSMEs led by women will benefit from additional financial assistance, priority access to government schemes, and skill development programs. They will also receive special land allotments and capital investment subsidies.
  • SC/ST Entrepreneurs: Dedicated support for SC/ST entrepreneurs includes preferential access to financial schemes, capital subsidies, and training programs to encourage their active participation in the MSME sector.
  • Entrepreneurs with Disabilities: Entrepreneurs with disabilities will receive financial incentives and subsidies to help them establish and expand manufacturing units within Jharkhand’s MSME sector.

Sustainability and Green Manufacturing

The Jharkhand government encourages MSMEs to adopt green technologies and sustainable manufacturing practices by offering various incentives and grants.

  • Green Manufacturing Subsidy: MSMEs can receive up to a 40% subsidy for investments in renewable energy sources (solar, wind, and biomass), energy-efficient technologies, and waste management systems, promoting eco-friendly manufacturing practices.
  • Zero Defect Zero Effect (ZED) Certification: MSMEs can access 80% financial support to obtain ZED certification, ensuring compliance with global standards in environmental sustainability and product quality.
  • Recycling and Waste Management: Financial assistance is available for MSMEs investing in waste recycling technologies, circular economy initiatives, and water/energy conservation systems, with a focus on resource-intensive sectors such as textiles, chemicals, and food processing.

Incentives for SME Manufacturing in Jharkhand

To foster the growth of Micro, Small, and Medium Enterprises (MSMEs) in Jharkhand, the MSME Manufacturing Policy 2024-2030 provides a comprehensive set of financial and non-financial incentives. These incentives are crafted to support new investments, aid the modernization of existing enterprises, encourage technology upgrades, and promote sustainable manufacturing practices. The policy aims to position Jharkhand as a leading destination for MSME entrepreneurs, driving industrial growth, enhancing export competitiveness, and boosting job creation.

Here is a detailed breakdown of the incentives for MSME manufacturing in Jharkhand:

Land and Infrastructure Incentives

Jharkhand offers generous land-related incentives to reduce the initial costs of setting up  MSME manufacturing units. These include land allotments at concessional rates and subsidies for infrastructure development.

IncentiveDetails
Land Allotment at Concessional RatesUp to 100% land allotment subsidy for MSMEs with investments in Plant & Machinery up to ₹10 crores, with a land cap of 5 acres. For larger projects with investments up to ₹50 crores, the subsidy will be 75%.
Preferential Land Allocation in  MSME  ParksPriority access to land in MSME  Manufacturing Parks and Special Economic Zones (SEZs) with concessional rates for MSMEs involved in priority sectors such as electronics, textiles, agriculture processing, and pharmaceuticals.
Stamp Duty Exemption100% exemption on stamp duty for MSMEs investing up to ₹10 crores in backward regions or industrially underdeveloped areas. 75% exemption on stamp duty for MSMEs investing between ₹10 crores and ₹50 crores in semi-developed regions.
Infrastructure Development Grants50% grant on investments made by MSMEs towards building internal roads, power supply systems, wastewater treatment, and other essential infrastructure for their manufacturing units, capped at ₹2 crores.

Financial Assistance and Capital Subsidies

To reduce the capital expenditure burden, the Jharkhand government provides capital subsidies, interest subsidies, and other financial support for the procurement of plant and machinery, modernization, and expansion of MSMEs.

IncentiveDetails
Capital Investment Subsidy25-30% subsidy on investments in Plant & Machinery for new  MSME  units or for the expansion of existing units, with additional subsidies for  MSMEs owned by SC/ST, women, or entrepreneurs with disabilities. This subsidy is capped at ₹50 crores per project.
Interest Subsidy on Loans50% reimbursement on the interest paid for loans taken to finance capital expenditure, for a period of 5 years, up to a maximum limit of ₹1 crore per unit.
Subsidized Loans for Technology UpgradationSubsidized loans at reduced interest rates for MSMEs investing in the latest manufacturing technologies, automation, and digital transformation, particularly in sectors like automobile, textiles, pharma, and food processing.
Working Capital SupportMSMEs engaged in sectors like agriculture, textiles, handicrafts, and electronics can avail interest-free working capital loans for the first 3 years of operation.
Access to State Venture Capital FundsVenture capital and private equity financing support for innovative MSMEs working in high-tech manufacturing, clean energy, and sustainability-driven industries. The state-backed fund will provide up to 50% equity participation.

Tax-Related Incentives

Jharkhand offers an array of tax benefits and rebates to reduce the operational costs of MSMEs, making it easier for them to maintain profitability while scaling their operations.

IncentiveDetails
SGST Reimbursement75-100% SGST reimbursement for new MSMEs or those expanding, modernizing, or diversifying their businesses. The reimbursement will be applicable for a period of 5 years based on the capital investment made and the location of the unit.
Corporate Tax Rebate10-year corporate tax holiday for MSMEs located in backward regions or economically disadvantaged areas, ensuring that businesses can reinvest profits into expansion and modernization.
Tax Holiday for Export-Oriented UnitsFull tax exemption for export-oriented units (EOUs) for the first 7 years of operation, encouraging MSMEs to engage in global trade and boost exports from Jharkhand.
Electricity Duty Exemption100% exemption from electricity duty for MSME units for the first 5 years for MSMEs with a contract demand of up to 750 KVA. Larger units will receive 50% exemption on electricity duty for 3 years.
Exemption on Entry TaxMSMEs can avail 100% exemption on entry tax for the purchase of raw materials, machinery, and equipment necessary for manufacturing, applicable for a period of 5 years from the commencement of commercial production.

Employment and Skill Development Incentives

Recognizing the importance of job creation, the Jharkhand government offers a variety of employment incentives and training subsidies to encourage the hiring of local workers and ensure a skilled workforce for the MSME sector.

IncentiveDetails
Employment Subsidy100% reimbursement of employers’ contribution towards ESI (Employees’ State Insurance) and EPF (Employees’ Provident Fund) for female employees for 5 years, and 75% reimbursement for male employees for the same period.
Apprenticeship and Internship ProgramsUp to ₹1 lakh per annum subsidy for MSMEs that offer on-the-job training, internship, or apprenticeship programs to local youth in Jharkhand, promoting workforce development.
Skill Development Grant50% reimbursement of the costs incurred by MSMEs on employee skill development programs, vocational training, and technical
 Certifications, capped at ₹10 lakhs per unit. This is specifically targeted at fostering a skilled labor force for advanced manufacturing sectors.
Job Creation IncentivesMSMEs creating more than 100 jobs will receive a special job creation incentive of ₹50,000 per employee, up to a maximum of ₹50 lakhs, applicable to units that hire local residents from Jharkhand.
Special Employment Schemes for SC/ST and Women EntrepreneursMSMEs owned by SC/ST entrepreneurs or women will receive additional subsidies for every employee hired, with a focus on job creation in economically disadvantaged communities.

Export Promotion and Market Access Incentives

To support MSMEs in expanding their reach into international markets, Jharkhand offers a wide range of export incentives and facilitates global market access through subsidies, financial assistance, and trade support services.

IncentiveDetails
Export SubsidySubsidies of up to 30% of the total project cost for MSMEs engaged in exports, covering costs such as logistics, shipping, and international marketing.
Market Access ProgramsFinancial support for MSMEs to participate in international trade fairs, exhibitions, and buyer-seller meets to showcase products and enter global markets, capped at ₹10 lakhs per year.
Product Branding and Certification Support100% reimbursement of costs incurred by MSMEs for obtaining international quality certifications and product branding, ensuring that products from Jharkhand meet global standards.
Export Credit and Trade FinanceAccess to export credit facilities at reduced interest rates through state-backed financial institutions, ensuring liquidity for MSMEs engaged in global trade.
Freight Subsidies for Export-Oriented UnitsFreight subsidies for MSMEs exporting from Jharkhand’s designated export zones or SEZs, covering up to 50% of transportation costs for shipments to international markets.

Technology Upgradation and Modernization Incentives

The Jharkhand government encourages MSMEs to embrace technology and automation by offering incentives for technology upgradation, R&D, and modernization of manufacturing processes.

IncentiveDetails
Technology Purchase Subsidy50% subsidy on the cost of purchasing advanced technologies or machinery, particularly in sectors such as automotive, electronics, agriculture processing, and biotechnology, capped at ₹20 lakhs.
Subsidy for Industry 4.0 AdoptionSpecial subsidy for MSMEs adopting Industry 4.0 technologies, including AI, machine learning, automation, and smart manufacturing solutions. The subsidy will cover 30% of technology costs, with a cap of ₹1 crore.
R&D Incentives50% reimbursement on R&D expenditure for MSMEs engaged in new product development, prototyping, and process innovation, particularly in high-tech sectors such as pharmaceuticals, electronics, and green technologies.
Energy Efficiency and Sustainability GrantsGrants for MSMEs that adopt energy-efficient technologies, renewable energy sources, and green manufacturing practices. The grants will cover up to 40% of the total project cost for energy-saving initiatives.

Sustainability and Green Manufacturing Incentives

To promote sustainable development and reduce the carbon footprint of industries, the government offers a variety of green incentives for MSMEs adopting environmentally friendly practices.

IncentiveDetails
Sustainability GrantsGrants covering 35-50% of the project costs for MSMEs implementing green technologies such as solar energy, water recycling, waste reduction, and clean production methods, capped at ₹30 lakhs per unit.
Zero Defect Zero Effect (ZED) Certification80% financial support for obtaining ZED certification, which ensures that MSMEs meet international standards for environmental sustainability and production quality.
Green Building Incentives50% subsidy on investments in constructing energy-efficient buildings, including LEED-certified manufacturing units and zero-energy facilities.
Recycling and Waste Management SubsidySubsidies for waste management technologies, including recycling systems, waste-to-energy conversion, and circular economy initiatives in sectors such as textiles, food processing, and chemicals.
Water and Energy Audit Support75% reimbursement for MSMEs conducting water and energy audits, capped at ₹5 lakhs per unit. This ensures that MSMEs are using natural resources efficiently and meeting global sustainability standards.

Ease of Doing Business

The Jharkhand government is dedicated to streamlining the business setup process for MSMEs by offering the following:
  • Single Window Clearance System: An online portal that provides seamless access to all MSME-related approvals, including land acquisition, environmental clearances, and licenses, ensuring quick and efficient processing.
  • Facilitation Centers: State-level facilitation cells will be established to guide MSME entrepreneurs and investors through the entire process of setting up and operating their businesses.
  • Cluster Development: The promotion of cluster-based development in targeted sectors, helping MSMEs leverage economies of scale and enhance their competitiveness.

Conclusion
Empowering MSMEs to Lead Jharkhand’s Industrial Growth

The Jharkhand MSME Manufacturing Policy 2024-2030 is a comprehensive blueprint aimed at transforming the state into a manufacturing hub, powered by the energy and innovation of its Small and Medium Enterprises (MSMEs). By promoting inclusive growth, sustainability, and enhancing global competitiveness, this policy strives to make Jharkhand the preferred destination for MSME investments.

With strategic incentives, world-class infrastructure, and a business-friendly regulatory environment, Jharkhand is set to lead in MSME-driven industrialization, creating growth opportunities across all sectors and regions. The state invites entrepreneurs, investors, and stakeholders to be part of this journey towards innovation, sustainable development, and economic prosperity.

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Make in Jharkhand is a Public Benefit Corporation (PBC) committed to positioning Jharkhand as a dynamic force in global economic collaboration. With strategic partnerships spanning the USA, Europe, Australia, African Union, KSA, China, India, Qatar, Saudi Arabia, Türkiye, and the UAE, we focus on key sectors such as energy, technology, agriculture, and finance. Our mission is to adopt global best practices, drawing from successful economic models to foster inclusive and sustainable development. By aligning with forward-thinking strategies, Make in Jharkhand aims to accelerate economic diversification, empower communities, and promote responsible growth. Leveraging Jharkhand’s geographic strengths and rich resources, we seek to attract high-impact investments, fuel innovation, and elevate the state’s global economic standing — in line with the government’s vision for a connected, tech-driven future.

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