Close on the heels of the launch of Uttar Pradesh’s new industrial policy, the micro, small and medium enterprises (MSMEs) within the state have urged the Yogi-Adityanath government to chart out an exclusive policy for the sector.
The sector has been kept outside the ambit of the upcoming policy that was approved by the state cabinet on July 4. Industry players are consequently demanding the inclusion of MSMEs, while saying that its contribution to the state’s manufacturing output is almost at par with large-scale operators in UP.
The Indian Industries Association (IIA), which is the apex body for MSMEs
in the country, has prepared a draft proposal discussing the ground reality of the sector. It also provides alternative policy suggestions that will help the sector’s growth in the region.
The draft, which was prepared after studying the policies espoused by different states, has been submitted to the state’s newly appointed chief secretary, Rajive Kumar. It raises the issue of the new policy being inclined towards large-scale investments.
For example, states like Gujarat, Haryana and Punjab that touted to be the preferred destination for industries are strategically inclined towards global outreach. This is, however, in tandem with having a pro-MSME policy aimed at protecting and promoting the sector.
Uttarakhand, on the other hand, is attractive because of its aggressive policy. Meanwhile, other states that are struggling to make a mark on the national industrial landscape like Chhattisgarh and Rajasthan are aggressively showcasing the region as an emerging destination for investment by introducing a slew of incentives and initiatives for interested players.
Around 5.2 million MSMEs
operate in the state, thereby, providing employment to 11.5 million people in the region.
have a significant role in making the state’s ‘Brand UP’ and ‘Make-in-UP’ vision successful, argued the industry body.
UP’s contribution to the overall economy of the country stands at 8.4 per cent, while its population accounts for around 16.5 per cent of India’s total population.
In this context, IIA has suggested the Yogi government to promote the sector for increasing the state’s contribution to the national economy by creating jobs and spurring income levels.