Efforts & Programs of the Government of Uttar Pradesh to Assist MSMEs

Although Uttar Pradesh has a lot of promise, its entire value hasn't yet been appreciated. A location with a huge client base, a young population, and an agrarian economy has yet to be acknowledged as an industrial destination. With over 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's in the nation. Data from the MSME Ministry's annual report for 2020–21 show that the 90 000 MSMEs constitute 14% of all 6.33 crore MSME businesses in India.

The state has excellent potential for industrial development because of its plentiful resources, competent and semi-skilled labour force, and sizable consumer market. By maximising their investment potential, the state government has been taking the required efforts to attract companies and establish an environment that will allow them to launch new firms and grow current ones.

Despite being a landlocked state, it has excellent road, rail, and aviation connections to the rest of the nation. Minerals, forests, plants, and animals are among the abundant natural resources in UP. Opportunities for agriculture and food production are provided by vast expanses of verdant rural plains and an extensive river network.

The state offers a range of subsidies, fiscal and regulatory incentives, as well as assistance to businesses, all in accordance with the Industrial and Service Sector Investment Program of 2004. Also, the state has carefully constructed regulations for tourism, biotechnology, and I.T.

To summarise, UP has the following attributes that make it the ideal for business establishments:

• An enormous staff

The state is a desirable destination for knowledge-based enterprises due to its vast supply of talented individuals. The state also has a sizable pool of semi-skilled and unskilled labour.

• Improvement of the infrastructure

The state has well-established social, physical, and industrial infrastructures. Because to its proximity to four national roads, six airports, and rail lines, it also provides good access to all major cities. The state has experienced tremendous infrastructure growth in recent years. Public-private partnerships and industrial clusters/hubs have multiplied dramatically in the infrastructure sector.

Outline of MSME Sector in Uttar Pradesh

The MSME sector in Uttar Pradesh is essential. These companies contribute to the industrialization of rural and underdeveloped areas, eradicating regional imbalance and guaranteeing a more equitable distribution of national income and wealth. They also help give large-scale employment opportunities at a lower cost of capital. These small and medium-sized companies serve as an adjunct to and a supplement to bigger and medium-sized companies.

The MSME sector is the foundation of any nation's economic growth and development due to its dedication to modern efficiency, job generation, adaptability, and versatility. When it comes to generating jobs and exporting goods to gain foreign currency, MSME industries play a key role in the UP economy. More than 60% of the industrial production in Uttar Pradesh is produced by MSME companies.

Because it has the most MSME units in the nation, Uttar Pradesh is a major exporter of MSMEs in categories including detailed work, designing goods, rugs, ready-made clothing, etc. The largest increase in Micro, Small, and Medium Businesses (MSME) credit was seen in Uttar Pradesh at the end of December 2017, with a total sum of Rs 570 billion.

State government's plans for the expansion of MSME

The government of Uttar Pradesh is making a lot of effort to promote MSME growth. The government wants to boost MSME exports to Rs 5 trillion over the next few years on the strength of One District, One Product (ODOP) and other MSME development schemes.

Loans are given to business owners at numerous summits with the intention of generating a large number of jobs. Almost 75 districts in Uttar Pradesh have indigenous enterprises that specialise in producing one-of-a-kind goods. The government wants to organise regional products and encourage companies to brand and sell them abroad.

The U.P. Micro, Small and Medium Businesses Promotion Policy 2017 has been chosen to be implemented by the state government in light of the region's crucial commitment to developing business, independent work, and occupation development, as well as expanding per capita pay. The goals of the policies are to improve job growth and attract investment to Uttar Pradesh. This can be done by putting in place a sophisticated, technologically advanced administrative system that will supervise the building of new units, the expansion and upgrading of existing units, and provide entrepreneurs with end-to-end support. The ultimate objective is to close social class divides and remove regionaldifferences in entrepreneurship, employment, per capita income, and employment.

State government programmes and initiatives

One District, One Product (ODOP)

In 75 districts across Uttar Pradesh, this effort aims to build product-specific traditional manufacturing centres. This will strengthen traditional industries in a number of state districts. The Indian Prime Minister, Shri Narendra Modi, praised the ODOP programme and called it "an extension of Made in India." The programme offers financial assistance for the growth of specialised product manufacturing through marketing, skill development, the development of shared facilities, and the growth of MSME businesses.

Due to the existence of a historical MSME industrial foundation, each of the state's 75 districts has been identified as producing a good with a sizable manufacturing competitive advantage. Examples of well-established value chains include chikankari in Lucknow, silk textiles in Varanasi, and the locks and hardware industry in Aligarh. By providing a comprehensive help package for chosen items, including increased access to technology, markets, finance, and skills, the ODOP initiative seeks to reach every district in the state.

I.T. and Start-up Policy for Uttar Pradesh

The Uttar Pradesh I.T. and Start-up Policy intends to capitalise on the innovation sector's full potential as a significant forerunner of progress, reaping the benefits of occupation creation, development, and overall financial development. The State Government has brought about minimal change by creating an enabling policy framework and executing proactive actions to translate these policies on the ground. The Uttar Pradesh twin cities of Noida and Greater Noida have developed into important software and startup hubs.

The state of Uttar Pradesh is working admirably to promote innovation and entrepreneurship and to inspire young people to create jobs rather than just look for them. To specifically offer finance to start-ups in Uttar Pradesh, an INR 1,000 crore Uttar Pradesh Start-up Fund is being established. To support the creation of a positive business climate through reforms to the ease of doing business, Udyog Bandhu has created a single-window clearance process.

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 practises to foster 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.

Youth Self Employment Program of the Chief Minister of Uttar Pradesh

The Uttar Pradesh government introduced the Mukhyamantri Yuva Swarozgar Yojana to enable autonomous work opportunities for the state's educated yet unemployed youth. The National Informatics Center (NIC) UP State Center has been working on an online interface with end-to-end computerization to provide a single window framework to coordinate application, removal, and continuing checking. The platform was introduced on February 19, 2020, by Chaudhary Udaybhan Singh, the government of Uttar Pradesh's honourable minister of state for MSME and export promotion.

Under the plan, banks are permitted to offer loans of up to Rs. 25 lakh for starting businesses and Rs. 10 lakh for the service sector. Additionally, the state government may contribute up to 25% of the required margin, or Rs. 6.25 lakh for the industry sector and Rs. 2.50 lakh for all other sectors.

Uttar Pradesh's 2017 Industrial Investment & Employment Promotion Policy

The Industrial Investment & Job Promotion Policy of Uttar Pradesh 2017 will attempt to leverage the state's inherent strengths while establishing new ones and resolving its underlying inadequacies in light of the economic dynamics at play at the Indian, Asian, and global levels. With the help of the strategy, current industries will be stabilised and improved, and new foreign and domestic industrial investments will be attracted and realised.

In order to create the position and stimulate the state's long-term, all-encompassing, and balanced financial growth, the Industrial Investment and Employment Promotion Policy of Uttar Pradesh 2017 intends to make the express a seriously serious venture objective on a national and international scale.

The 2020 Uttar Pradesh Startup Policy

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 at institutions of higher learning, and Centers of Excellence to foster innovative work in emerging breakthroughs.