Despite the Covid-19-induced slowdown in business activities globally, the Uttar Pradesh government is targetting to double micro, small and medium enterprises (MSME) in the next three years to touch Rs 2.40 trillion.
During 2018-19 and 2019-20 financial years, the MSME exports from UP stood at nearly Rs 1.14 trillion and Rs 1.20 trillion respectively.
“We have set the target of doubling our exports in the coming three years to touch Rs 2.40 trillion,” UP additional chief secretary, MSME and export promotion, Navneet Sehgal told Business Standard here.
He informed a new export promotion policy was already on the anvil to augment shipments from the state in the coming years.
Besides, the Yogi Adityanath government is looking to tap the lucrative global textile supply chain by providing a competitive avenue to international buyers, who are currently procuring textile and fabrics from China.
“We are holding discussions with UP-based units with regards to providing an alternative vendors base in UP to international buyers sourcing goods from China. We will incorporate their suggestions in our new export promotion policy to make it more contemporary and competitive,” he noted.
To overcome Covid-19 headwinds, the UP government will host virtual exhibitions (e-exhibition) during the current fiscal year 2020-21.
The government is banking on its flagship one district one product (ODOP) scheme to achieve its ambitious goal although the disruption on business, commercial and industrial activities have been massive across the country, UP being no exception.
The ODOP scheme was launched by the Adityanath government in 2018 to promote the traditional and indigenous industries and handicrafts by facilitating state support in terms of setting up of new enterprises, bank credit and marketing.
Since, Covid-19 safety and health protocols are expected to lead to deferment of global trade fairs and exhibitions, the state will offer help to exporters participating in virtual exhibitions under the flagship Market Development Assistance (MDA) Scheme.
Besides, the UP Export Promotion Council will also organise virtual exhibitions for the state exporting firms, for which a blueprint is being charted out.
According to estimates, UP is home to nine million MSMEs with the sector forming the industrial backbone of the state. It contributes 60 per cent to UP’s annual industrial output and directly employs 50 million people.
Interestingly, the MSME sector blends with the macro socioeconomic development plank of the Adityanath regime, while resurrecting the positive image of UP and repositioning the state as a preferred investment destination in the league of Indian states.
Recently, chief minister Adityanath had directed officials to expedite the action plan to leverage the loan component of Rs 15,000 crore for the domestic MSME sector in the federal economic package of more than Rs 20 trillion announced by the Centre to overcome the challenges of Covid-19 pandemic and lockdown.