Government Programmes and Initiatives in Uttar Pradesh to Support MSME

The full potential of Uttar Pradesh has not yet been realized. Young people, an agrarian economy, and a dense population have not yet been associated with an industrial destination. With more than 200 million residents and over 150 million eligible voters, Uttar Pradesh, the most populous state in India, has seen a remarkable increase in the ease of doing business recently. With over 90,000 enterprises, Uttar Pradesh has the biggest concentration of MSME Registration establishments in the nation. These 90 000 MSMEs account for 14% of India's overall MSME population of 6.33 crore, according to data from the MSME Ministry's annual report for 2020–21. The state has a lot of potential for industrial growth due to its plentiful resources, skilled and semi-skilled labor force, and sizable consumer market. The state government has been taking the required actions to draw businesses and to foster an atmosphere that will allow them to launch new ventures and grow current ones by maximizing their investment potential.

Despite being a landlocked state, it has good access to the rest of the nation via roads, railroads, and the air. UP is rich in natural resources, such as minerals, forests, vegetation, and fauna. Agriculture and food processing are made possible by the vast expanses of verdant rural plains and the extensive river system. The state offers various subsidies, fiscal and policy incentives, as well as support to businesses under the Industrial and Service Sector Investment Policy of 2004. The state also has carefully developed regulations for tourism, biotechnology, and information technology.

To sum up, the following characteristics of UP make it ideal for business establishments.

➨Massive workforce

The state attracts knowledge-based enterprises because of its vast pool of talented individuals. A significant pool of semi-skilled and unskilled laborers is also present in the state.

➨Construction of infrastructure

The social, physical, and industrial infrastructures of the state are all well-established. Four national highways, six airports, and train lines provide excellent connectivity to all major cities as well. The state's infrastructure has grown significantly in recent years. In the area of infrastructure, there are now much more public-private partnerships and industrial clusters/hubs.

➨Continuity in government

Politics are guaranteed to be stable under a one-party system. The state government has sought to promote a beneficial economic environment by enacting a number of legislation and providing incentives.

Uttar Pradesh's MSME Sector Overview

The MSME industry in Uttar Pradesh is crucial. In addition to assisting in the industrialization of rural and underdeveloped areas, which eliminates regional imbalance and ensures a more equitable distribution of national income and wealth, these firms also help provide opportunities for large-scale employment at lower costs of capital. These small and medium-sized companies serve as auxiliary entities that support and enhance larger and more established companies.

The MSME sector is the foundation of any nation's economic development due to its dedication to modern efficiency, the creation of new jobs, flexibility, versatility, and product commitment. MSME industries contribute significantly to the UP economy in terms of job creation and the generation of foreign exchange through exports. Over 60% of all industrial production in Uttar Pradesh is produced by the MSME sector.

Due to the fact that Uttar Pradesh has the most MSME units in the nation, it is a major exporter of MSMEs in categories including detailed work, designing goods, rugs, ready-made clothing, etc. Uttar Pradesh experienced the largest growth in Micro, Small, and Medium Enterprises (MSME) credit, with a total remarkable of Rs 570 billion by the end of December 2017.

State government's plans for the expansion of MSME

The government of Uttar Pradesh is actively supporting the expansion of MSME. In the next few years, the government wants to boost MSME exports to Rs 5 trillion on the back of One District, One Product (ODOP) and other promotional programmes for MSME.

Entrepreneurs are given loans at numerous summits in the goal of generating a large number of jobs. With over 75 districts producing one-of-a-kind goods, Uttar Pradesh is renowned for its indigenous industries. Local products will be organized by the government, who will also encourage enterprises to brand and market them globally.

The U.P. Micro, Small and Medium Enterprises Promotion Policy 2017 has been chosen to be implemented by the state government due to the region's vital commitment to fostering company growth, the establishment of independent employment and occupations, as well as raising per capita income. With the help of these policies, Uttar Pradesh should become a popular place for investments and job growth. This can be done by setting up a high-end, technology-driven administrative system that will monitor the building of new units, the expansion and upgrading of current units, and provide entrepreneurs with end-to-end assistance. In terms of entrepreneurship, employment, per capita income, and social class gaps, the ultimate objective is to eradicate regional variations.

Initiatives and Programmes of the State Government

ODOP stands for One District, One Product.

In 75 districts across Uttar Pradesh, this effort aims to establish traditional production centers for a certain product. Traditional industry will benefit in a number of state districts. Shri Narendra Modi, the Prime Minister of India, praised the ODOP programme and called it "an extension of Make in India." Through marketing, talent development, the creation of shared facilities, and the growth of MSME companies, the programme offers financial support for the expansion of the manufacture of specialized products. Because each of the state's 75 districts has a historical MSME industrial foundation, they have all been identified as having a product with a significant manufacturing competitive advantage. Examples of well-established value chains include the locks and hardware industry in Aligarh, Chikankari in Lucknow, and silk textiles in Varanasi. The goal of the ODOP initiative is to provide each district in the state with a comprehensive package of support for a few chosen products, including better access to markets, technology, finance, and skills.

Youth Self Employment Programme of the Chief Minister of Uttar Pradesh

The Mukhyamantri Yuva Swarozgar Yojana was introduced by the government of Uttar Pradesh to empower independent work opportunities for the state's educated yet unemployed youth. The National Informatics Centre (NIC) UP State Centre is developing an online user interface that is fully automated to provide a single window framework for configuring application, removal, and continuing checking. The platform was launched on February 19, 2020, by Chaudhary Udaybhan Singh, the Hon'ble Minister of State for MSME and Export Promotion, Government of Uttar Pradesh. Under the programme, banks may offer loans of up to Rs. 25 lakh for business startup and Rs. 10 lakh for the service sector. Additionally, the state government may offer up to Rs. 6.25 lakh in 25% margin funds for the industrial sector.

Policy of Uttar Pradesh 2017 to Promote Industrial Investment and Employment

The Industrial Investment & Employment Promotion Policy of Uttar Pradesh 2017 will attempt to leverage the state's innate strengths while establishing new ones and resolving its fundamental weaknesses in light of the economic dynamics at play on the Indian, Asian, and global levels. The goal of the plan is to create a framework for enhancing and stabilizing existing industries as well as luring in and bringing about new domestic and foreign industrial investments. The Industrial Investment and Employment Promotion Policy of Uttar Pradesh 2017 seeks to establish the state as a really important worldwide investment target, developing the position and igniting the state's long-term, all-encompassing, and balanced economic growth.

Policy for Export Promotion

By providing the necessary export-related assistance for exporting goods and services and building an expanding technical and physical infrastructure to grow state exports, this approach aims to encourage export development and competition. Additionally, by employing the best export practices to encourage capacity development, we hope to promote exports, give necessary assistance for the expansion of industries' export potential, and explore global market opportunities for goods produced locally / in the nation.

Startup Policy for Uttar Pradesh by 2020

In order for students to acquire the principles of entrepreneurship from the beginning, the state government seeks to foster an entrepreneurial culture in schools. This project will help build future entrepreneurs in addition to raising the bar for student learning. The strategy aims to, among other things, support the establishment of E-Cells in colleges, Incubators in institutions of higher learning, and Centres of Excellence to foster innovative work in emerging developments.

IT & Startup Policy for Uttar Pradesh

The Uttar Pradesh Information Technology and Startup Policy intends to capitalize on the innovation sector's genuine potential as a great harbinger of growth, reaping the benefits of employment creation, development, and overall financial development. The State Government has ushered in minimal change by creating an enabling policy framework and taking proactive steps to implement these regulations. Noida and Greater Noida, Uttar Pradesh's twin cities, have developed into the state's key software and startup hubs.