Largest number of MSMEs in UP, India.

The 15th Finance Commission headed by Chairman, Shri N.K. Singh alongwith its Members and senior officials met today with the representatives of the Trade and Industry bodies in Uttar Pradesh.

Uttar Pradesh was placed amongst the high achieving states in the country securing the 12th position in the 2017 evaluation and has jumped two positions from 14 in 2016.

(Ease of doing business ranking) : The State has been labelled as an “Achiever State” with a combined score of 92.8 percent in the score as calculated by Department of Industrial Policy and Promotion(DIPP), Ministry of Commerce & Industry, Government of India consisted of scores from the reform implementation score and feedback score. The evaluation was done against 372 reforms, which were bucketed under 12 reform areas.

According to the Union Ministry of Micro, Small and Medium Enterprises, State of Uttar Pradesh had the largest number of estimated MSMEs with a share of 14.20% of MSMEs in the country with around 89.99 lakh MSMEs operating in the State.

This sector is also a major source of employment in the State. The State needs to strengthen this sector, in their, requirement of credit, technology, raw material and marketing to encourage entrepreneurship, employment and livelihood opportunities and enhance the competitiveness of MSMEs in the changed economic scenario.

Tourism and Interlinked Sectors – Forward and Backward Linkages:

The State offers vast and unexploited potential for domestic tourists who, along with the foreign tourists, could contribute towards pushing the economic growth further, while providing employment opportunities.

Tourism (pilgrimage) is vital sector for the State and economy of the State is based on sectors like tourism, handloom, handicraft, educational, hospitality, etc. For instance, 50% of economy of Varanasi city is dependent on tourism sector. These sectors are closely intertwined tend growth and employment are dependent on them According to the Tourism Statistics of 2018, the State ranks third amongst all Indian States in attracting foreign tourists visits in the country (2017) and 13.2 percent of all foreign tourist visits were attracted by the State.The State ranks 2nd amongst all Indian States in attracting domestic tourists visits in the country in (2017) and 14.2 percent of all domestic tourist visits were attracted by the State.There is a need of launching of national image building and marketing plans in key sites of cultural and religious importance. These sitescan be used for building the Brand India for promoting tourism.

The Commission noted that the State of UP faces the number of typical challenges:

Decreasing share of secondary sector in GSDP: During the period 2011-12 to 2017-18, the share of Secondary Sector in 2017-18 dropped to 22.8 percent from 26.7 percent in 2011-12. This may have strong implications on employment.

Regional Backwardness: State has a large variation in terms of land, soil, rainfall and climate. Of the four regions (Western, Central, Eastern and Bundelkhand), the regions of Eastern and Bundelkhand lags far behind in the race of overall development in key sectors of power, industrial development and transport.Power is another sector which plays an important role in economic infrastructure. As per data of 2016-17, the per capita power consumption is lowest (239.82 Kwh) in Eastern region.Industrial development in the State is not uniform.

The number of employees engaged in registered factories per lakh of population during 2013-14 was 101.19 in Bundelkhand while it was 110.80 in Eastern region. This indicates that both regions are backward in respect of Industrial development.Transport is another key sector for economic infrastructure. If the length of pucca road under P.W.D. on the basis of per thousand of area is considered, the Eastern region occupies the top position with a figure of 1220.38 Km. while Bundelkhand region (498.35 Km.) is placed at the bottom.

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