Uttar Pradesh MSME units double in three years, open job avenues

LUCKNOW: UP has about 90 lakh MSME units currently, an increase of 45 lakh units over the past three years, claims a report released by the MSME Export Promotion Council (EPC). The report is based on National Sample Survey data.

The report was released by DS Rawat, chairperson of MSME EPC, who said that by 2020-2021, the total number of MSME units in UP could reach 1.40 crore and provide employment to three crore people.

As per the report, UP had 44.03 lakh Ministry of Micro, Small & Medium Enterprises (MSME) units in 2014-15 which increased at an average rate of 15 lakh units over the next three years, a result largely of the state's one district-one product scheme.

The report adds that exports from UP have gone up under categories of handicraft, engineering goods, carpets, readymade garments, leather products among others.

"MSME accounts for almost 65% of the total industrial output in UP. The state has the highest number of registered and unregistered units, which is almost 90 lakh. It is followed by West Bengal , Tamil Nadu , Maharashtra and Karnataka. Consequently, it is also the highest employment provider in the state at almost 1.70 crore," Rawat said. The report states that the sector employs about 27.27 lakh women and 1.38 crore men.

Despite its importance to the economy, Rawat said, the sector is facing problems like unavailability of adequate and timely credit, high cost of credit, and lack of plans to revive sick units. "The UP MSME Finance Corporation should also be revived to support the sector," Rawat said.