Invest in innovation and technology, UP tells MSMEs

The Uttar Pradesh government has urged micro, small and medium enterprises (MSMEs) to invest in technology and innovation for a more sustainable model of growth.

The state accounts for about 12 per cent of India's MSMEs. It is home to the largest number of unregistered MSMEs and the third largest number of registered MSMEs among India's states.

UP is home to over three million MSMEs, which collectively contribute about 50 per cent of the gross state domestic product (GSDP) and employ 40 million people, directly and indirectly.

Addressing the MSME Excellence Summit here, Bhagwat Sharan Gangwar, UP's minister of state for MSME and export promotion, underlined the imperative of investing in technology and innovation for 'zero defect' manufacturing to withstand global competition.

The summit, organised by the UP State Council of the Confederation of Indian Industry (CII) here on February 20, was aimed at empowering the state MSME space through information, discussion and redress of grievances.

UP has traditional MSME hubs and clusters across the state - Varanasi for zari and silk, Bhadohi for carpets, Lucknow for chikan, Kanpur for leather, Agra for footwear and leather, Aligarh for locks, Moradabad for brassware, and Meerut for sports goods, among others.

However, the sector is constrained by numerous challenges, such as lack of an operational single window system, a scarce land bank, lack of clarity on leasehold industrial plots, cumbersome clearance/permit procedures, lack of trained manpower and steep energy costs.

MSMEs also lack marketing expertise, finance, a support system for exports, common facility centres and warehousing, which impedes their growth potential and often compels them to either forego their expansion plans altogether or look to other states for setting up facilities.

R K Singh, UP's joint export commissioner, said the state was willing to collaborate with the MSME sector to boost its productivity and increase the state's export basket. He also listed the state's industry-friendly policies and incentive schemes, which are aimed at promoting exports from the state.

Sachin Agarwal, chairman of CII's UP State Council and managing director of PTC Industries, stressed the need for automation in factories to increase productivity, adding that it could help MSMEs to make global forays.

The summit, which was attended by about 100 industrialists, also featured sessions on energy efficiency and the role of automation and robotics in the MSME space.