Yogi Adityanath govt targeting MSME exports of Rs 1 trillion in FY19

With Micro, Small and Medium  Enterprises (MSME) sector attaining priority in Uttar Pradesh for boosting economic activities and creating self-employment opportunities, the Yogi Adityanath government is targetting MSME exports worth Rs 1 trillion in 2018-19 (FY19).

This would be a growth of over 12 per cent compared to the MSME exports of about Rs 890 billion during 2017-18 (FY18). In 2014-15 and 2015-16, the MSME exports clocked about Rs 850 billion and Rs 812 billion respectively, thus showing a downturn of almost 5 per cent. The primary articles of exports from the state include leather goods, carpets, textiles, furniture, glassware, brassware, woodworks etc.

A senior MSME department official told Business Standard that the government had set the target of Rs 1 trillion in net exports during the financial year drawing strength from the multipronged action plan Uttar Pradesh government had undertaken to promote the sector, including the flagship One District, One Product (ODOP) scheme and liberal outlay to support entrepreneurs.

“We would also participate in major MSME trade fairs across the globe during the current fiscal, including Hong Kong, Japan, Italy and Philippines,” he informed.

After coming to power in March 2017, the Adityanath government had announced to accord priority to the sector, since it is the second largest job creator in UP after agriculture. The state currently has over 5 million MSMEs.

In January 2018, a month prior to holding high octane UP Investors Summit, the state had rolled out ODOP scheme to promote traditional crafts and industries in each of the 75 districts. In the current financial year, the government has allocated a budget of Rs 2.5 billion towards ODOP promotion.

Uttar Pradesh is famous for product specific traditional industrial hubs across 75 districts viz. Varanasi (Banarasisilk sari), Bhadohi (carpet), Lucknow (chikan), Kanpur (leather goods), Agra (leather footwear), Aligarh (lock), Moradabad (brassware), Meerut (sports goods), Saharanpur (wooden products) etc. The website also showcases such authentic merchandises.

At UP Investors Summit, the MSME sector had netted 348 MoUs and investment proposals worth Rs 60 billion, although aggregate commitments to the sector were much higher, considering a number of MSME proposals were clubbed under different heads, such as food processing, services etc.

The state has also declared to tie-up with e-commerce majors, such as Amazon, Flipkart and Alibaba for global marketing and branding of state products under ODOP scheme.

A mega ODOP Summit is being hosted in Lucknow on August 10, which would be inaugurated by the President Ram Nath Kovind. Bank loans of Rs 5 billion would be distributed to entrepreneurs all over the state to mark the day.

UP MSME minister Satyadev Pachauri said the state would leverage the various central schemes, including Stand UP India, Start-up India and MUDRA to turnaround the beleaguered traditional industries. There are plans to sew alliances with big shopping malls for the marketing of traditional product lines.