Rebooting industry: 88% industrial units now operational in Uttar Pradesh

A new export promotion policy is also on the anvil to augment shipments from the state
Industrial firmament in Uttar Pradesh is fast returning to the pre-lockdown level with nearly 88 per cent of the industrial units already operational across the state.

Of the total 930,348 industrial units, according to the database of the UP micro, small and medium enterprises (MSME) department, more than 818,000 units are now functional.

More than 70 per cent or 583,000 operational units are working at 80-100 per cent plant load factor (PLF), thus indicating a robust revival of their supply chains.

Similarly, 182,951 units and 34,515 units are working at the PLF of 50-80 per cent and 30-50 per cent respectively, according to UP additional chief secretary, MSME department, Navneet Sehgal.

These operational industrial plants spanning across different categories, employ more than 5 million workers and labourers. Most of these units are located in the known industrial hubs of the state, including Moradabad, Noida, Ghaziabad, Jhansi, Lucknow, Bhadohi etc.

Meanwhile, the department is working closely with the concerned industries to redress their grievances, especially those who have not been able to either start their units or improve their PLF.

Some of the most common impediments facing these units include transportation of raw material/finished goods, labour issues, working capital requirements, supply chain etc. Besides, the containment zone policies have also been found to be impeding the normalisation of industrial revival in some cases.

In fact, the Adityanath government is looking to double MSME exports in the next three years to touch Rs 2.40 trillion. During 2018-19 and 2019-20 financial years, the MSME exports from UP stood at nearly Rs 1.14 trillion and Rs 1.20 trillion respectively.

A new export promotion policy is also on the anvil to augment shipments from the state. At the same time, the government is targetting to tap the global textile supply chain by providing a competitive avenue to international buyers, who are currently procuring textile and fabrics from China.

“We are holding discussions with UP-based units with regards to providing an alternative vendors base in UP to international buyers sourcing goods from China. We will incorporate their suggestions in our new export promotion policy to make it more contemporary and competitive,” he had earlier said.

The government is banking on its flagship one district one product (ODOP) scheme to achieve its ambitious goal although the disruption on business, commercial and industrial activities have been massive across the country, UP being no exception.

The ODOP scheme was launched in 2018 to promote indigenous industries and handicrafts by facilitating state support in terms of setting up of new enterprises, bank credit and marketing.

Since, covid-19 health protocols are expected to lead to deferment of global trade fairs and exhibitions, the state will offer help to exporters participating in virtual exhibitions under the flagship Market Development Assistance (MDA) Scheme.

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