Impact of Industrial Policy on the Growth of Micro, Small And Medium Enterprises in Uttar Pradesh

Abstract

The Micro, Small and Medium enterprises sector is a very dynamic and upcoming sector of the Indian economy. It has emerged as a great contributor to the economic development of the country by providing huge employment opportunities. It encourages self -dependency by stimulating entrepreneurship thereby ensuring social development of the country. As the capital cost is low it has proved to be India’s boon after Agriculture in the past few decades. Currently there are approximately 633.8 lakh units spread throughout the country, contributing around 28.90% to the GDP and 49% to total exports of the country. The target set by MSME ministry is a contribution 50% to the GDP by 2025 as India forges ahead to achieve a $5 trillion economy. Uttar Pradesh has approximately 89.99 lakh MSME’s which is around 14.20% share of the total no of MSME’s in India as per NSS 73rd Round (15-16). In products like handicrafts, engineering goods, carpets, readymade garments, leather products of the MSME sector, U.P. is a lead exporter. The Government of U.P. recently launched the scheme of One District One Product (ODOP) among many other schemes to foster and encourage the setting up of more MSME’s. Uttar Pradesh (UP) has the highest number of MSME units in the country followed by West Bengal and Tamil-Nadu. With the help of this paper the growth in number of MSME units and MSME employment generation in Uttar Pradesh is studied. Provision in UP industrial policies for years 2004, 2012 and 2017 regarding MSME’s units has also been examined.