Q.1. What are the policies and programmes of the Government of Uttar Pradesh to promote MSMEs?

The Micro, Small, and Medium Enterprises (MSME) sector is the backbone of Uttar Pradesh’s economy, contributing significantly to employment and GSDP. The government has launched a multi-pronged policy framework to foster its growth.

• Uttar Pradesh MSME (Establishment and Operations Simplification) Act, 2020: Provides “NOC-free” establishment and operation for 1,000 days to new MSMEs to encourage entrepreneurship.
• One District One Product (ODOP): This is the flagship programme. It identifies, brands, and promotes a unique indigenous product from each of the 75 districts (e.g., brassware from Moradabad, chikankari from Lucknow). It provides support in marketing, skill development, and access to finance.

• UP MSME Policy (e.g., 2022): This policy provides a slew of fiscal incentives, including capital subsidies, interest subvention on loans, and exemptions on stamp duty and electricity duty, especially for units in Purvanchal and Bundelkhand.
• Financial Assistance: Schemes like the Mukhya Mantri Yuva Swarozgar Yojana provide financial aid to young entrepreneurs to set up new enterprises. Capital subsidy, interest reimbursement, and credit facilitation under various state and central schemes.
• Ease of Doing Business (EoDB): The ‘Nivesh Mitra’ single-window portal has simplified the process of obtaining NOCs, licenses, and approvals, making it easier to establish and operate an MSME.
• Marketing and Export Promotion: The government facilitates the participation of MSMEs in national and international trade fairs and links them to e-commerce platforms like Amazon and Flipkart to expand their market reach.
• Infrastructure Development: Establishment of industrial estates, MSME parks, and cluster-based development projects.

These integrated programmes aim to enhance the competitiveness of UP’s MSMEs, linking them to global supply chains and making them a key engine for achieving the $1 trillion economy goal.