Context: The recent conference “AI for Growth: Empowering MSMEs in Eastern Uttar Pradesh” highlighted how Artificial Intelligence can transform MSME operations, boost growth, and help overcome financial challenges.
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- This conference was organized by the Indo-American Chamber of Commerce, Varanasi Desk, at the Banaras Club, Varanasi.
- Speakers highlighted that AI-powered tools automate repetitive tasks, enabling employees to focus on more strategic and creative work.
- AI optimizes inventory, predicts demand, and improves logistics, thereby reducing operational costs.
- Furthermore, AI analyzes data to predict trends and consumer behavior, helping MSMEs make informed decisions and understand market needs.
MSME in UP:
- As of October 2025, the state has a 90-lakh MSME base, which contributes around 14 percent share of India’s total MSME count of 6.33 crore.
- MSMEs in UP provide employment to over 14 million people and the export-oriented nature of many MSMEs has significantly boosted the state’s foreign exchange earnings.
- In 2022, UP’s MSME exports were valued at approximately $16 billion, accounting for nearly 70% of the state’s total exports.
Government Initiatives to promote MSME
- UP MSME Policy 2022: Aimed at promoting MSME growth in Uttar Pradesh through capital subsidies, stamp duty exemptions, and infrastructure support, with special focus on backward regions like Purvanchal and Bundelkhand.
- Mukhyamantri Yuva Udyami Vikas Abhiyan Yojana (CM-YUVA): It aims to encourage young people to establish their own small industries, service ventures or business units instead of depending solely on salaried jobs.
- ODOP Common Facility Center Promotion: To provide infrastructure and shared facilities to artisans and entrepreneurs engaged in producing district-specific products.
- Vishwakarma Shram Samman Yojana: To strengthen the means of livelihood of traditional artisans such as carpenters, tailors, basket weavers, and handicraftsmen of urban and rural areas of the state and to upgrade their standard of living.
- Uttar Pradesh Micro and Small Industries Technical Upgradation Scheme: Financial assistance is provided to promote technology in various areas such as product quality improvement, environment improvement, energy efficiency, qualitative packaging testing facilities and, computerized quality control.
Future Initiatives:
- Govt is planning to interconnect 155 industrial clusters with a dedicated e-commerce (e-com) platform: The dedicated e-com portal is being developed by the UPSIDA.
- It will connect raw material suppliers, manufacturers, and finished goods vendors operating out of these 155 clusters.