Context:
On the occasion of International MSME Day, Uttar Pradesh’s Chief Minister started two new programs to help young people start their own businesses in the state. He launched a mobile app called ‘CM Yuva’ and opened ‘Youth Adda’ centers.
Uttar Pradesh also celebrated the resilience, innovation, and entrepreneurial spirit of its Micro, Small & Medium Enterprises (MSMEs), which continue to transform the state’s economic landscape and drive India’s growth in 2025.
More On News:
- It was declared on 27th June as International MSME Day in 2017.
- Theme for 2025: “Enhancing the role of MSMEs as drivers of Sustainable Growth and Innovation.”
- This day recognizes the achievements and challenges of MSMEs, while emphasizing the need for policy support, financial inclusion, and digital transformation to enable their growth in an increasingly competitive global landscape.
About MSME
The definition of Micro, Small, and Medium Enterprises (MSMEs) was revised under the Aatmanirbhar Bharat Abhiyaan on May 13, 2020.
- Under this revised framework, MSMEs are now classified based on a combination of investment in plant and machinery and annual turnover.
Uttar Pradesh Scenario
- In Uttar Pradesh, the Micro, Small, and Medium Enterprises (MSMEs) sector forms the backbone of the manufacturing industry, supported by a strong network of traditional clusters.
- The state is home to 90 lakh MSMEs, accounting for approximately 14 percent of India’s total 6.33 crore MSMEs.
- Among these, micro enterprises make up 89.64 lakh units, while small enterprises account for 0.36 lakh units.
- MSMEs in Uttar Pradesh play a crucial role in employment generation, offering jobs to millions, particularly in rural and semi-urban areas.
- This has contributed to reducing regional imbalances and fostering inclusive development.
- Women and marginalized communities, in particular, have gained significantly from the job opportunities created by these enterprises.
- MSMEs in the state employ over 14 million people, and many are focused on exports, which has greatly enhanced Uttar Pradesh’s foreign exchange earnings.
- In 2022, the state’s MSME exports were valued at around $16 billion, representing nearly 70% of its total exports.
Key MSME sub-sectors.
- The textiles and handicrafts sector is particularly notable, with traditional crafts such as handloom weaving, embroidery, and carpet making thriving in cities like Varanasi and Lucknow famous for silk saris and chikankari embroidery, respectively.
- The leather industry, centered in Kanpur and Agra, produces high-quality leather products and plays a major role in India’s leather exports.
- The state’s fertile agricultural landscape also supports a strong agro-processing sector, where MSMEs are actively involved in processing and packaging items like dairy, fruits, and vegetables.
- Growing digitalization, many MSMEs have expanded into IT services, software development, and digital marketing, contributing to Uttar Pradesh’s technological growth.
- Uttar Pradesh has made significant strides in branding, marketing, and promotion.
- To further boost industrial growth, the government launched the Promoting Leadership and Enterprise for Development of Growth Engines (PLEDGE) scheme, which allows private players to develop industrial parks across the state.
- The recent inauguration of the 11th Pledge Park in Jhansi marks a major milestone in this initiative.
- Through sustained efforts to provide financial support, improve infrastructure, and encourage innovation, the state has created a strong foundation for MSMEs to thrive.
- These initiatives have made MSMEs a vital part of UP’s economic growth and positioned them as important contributors to the global economy.
Key Development in the Industry
- The government aims to achieve a 15% annual growth rate in both MSME development and employment generation. To support this, several special schemes have been launched:
- Vishwakarma Shram Samman Yojana: Provides margin money and interest grants to local artisans and traditional entrepreneurs for bank-financed traditional industry development.
- Mukhyamantri Yuva Swarozgar Yojana: Targets educated unemployed youth, offering margin money and interest grants to establish enterprises in industry and service sectors.
- These schemes are aligned with the Pradhan Mantri Mudra Yojana and Stand Up India Scheme for greater impact.
- a special provision has been made for SC/ST and women entrepreneurs under the Mukhyamantri Yuva Swarozgar Yojana.
- The UP government launched a unique initiative ‘One District One Product (ODOP) Scheme’, which aims to revive and promote the state’s cultural heritage from the district level itself.
