MSME is the backbone of industrial growth, says UP CM Yogi Adityanath

Uttar Pradesh Chief Minister Yogi Adityanath on Saturday observed that the micro, small and medium enterprises (MSME) sector was the backbone of industrial growth and the government could act as a catalyst by simply promoting MSME clusters.

Addressing a gathering after inaugurating the ‘Hunar Haat’ in Lucknow, Adityanath said the MSME sector offered unlimited opportunities for creating employment opportunities with minimal capital investment and land requirements, since a majority of these units were operated out of the premises of entrepreneurs.

He mentioned UP’s flagship ‘one district, once product (ODOP)’ scheme to underline the priority accorded by his government to promote traditional industries and handicrafts of the state.

“During 2018-19 financial year, while the country’s industrial exports grew by eight per cent, UP clocked export growth of 28 per cent. This indicates the high potential in this sector,” he informed. The state had logged industrial exports worth Rs 1.14 trillion in 2018-19, compared with nearly Rs 89,000 crore the previous year.

The CM claimed his government’s proactive policies and marketing support helped Moradabad and Bhadohi industrial hubs post brassware and carport exports of Rs 6,000 crore and Rs 4,000 crore, respectively, last year.

UP was known globally for its traditional industries, but the state lost its glory because of apathy under previous regimes over the decades, he said.

Announcing that top exporters under the ODOP programme would soon be feted by the government, Adityanath said the proposed Defence Manufacturing Corridor in UP was gaining traction due to the state’s MSME muscle, especially in industrial production at places like Aligarh.

He further said that each of the 75 districts in UP was famous for its unique traditional and indigenous industry. They only needed a little government support in terms of policy, marketing, etc.

“We have achieved good results with our ODOP scheme and the MSME sector today is far from the sense of dejection and disappointment entrepreneurs had been feeling when we came to power,” he underlined.

Launched in 2018, the ODOP scheme aims to revive UP’s indigenous industries through financial, marketing and training support with the help of banks, knowledge partners and private marketing entities, including e-commerce.

The MSME sector accounted for 80 per cent of UP’s Rs 1.14-trillion exports in 2018-19. These enterprises generate nearly 60 per cent of the industrial output and rank second, next only to agriculture, among employment generators in the state.

Meanwhile, the state is aiming to facilitate business loans of more than Rs 62,000 crore to the beleaguered MSME sector in the current financial year. This will be 20 per cent higher than the Rs 51,808-crore MSME lending target fixed for the commercial banks in UP for 2019-20.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel