"There is an urgent need to evolve an effective strategy comprising various significant aspects of MSMEs and revival of sick industrial units in wake of rising land prices," said a detailed analysis for sustainable growth of MSMEs in Uttar Pradesh carried out by the Assocham.

The MSME sector accounts for about 45 percent of India’s total manufacturing output, about 40 percent of total exports, thereby employing over seven crore people in over three crore units manufacturing over six thousand products ranging from traditional to high-tech items, said Assocham national secretary general DS Rawat.

"A total of over 30 lakh MSMEs employ about 60 lakh people in UP alone with manufacturing sector accounting for about 25 percent share, besides, the total output from the registered MSMEs in UP is over Rs 80,000 crore," said Rawat.
However, limited availability of institutional credit has significantly crippled the growth of MSMEs in UP as less than five per cent of such units are able to procure institutional finance, he said.

As such, considering the wide gap between demand and supply of micro credit, Assocham has suggested that UP government together with leading microfinance companies, non-governmental organizations (NGOs), self-help groups (SHGs) and others should come forward and provide loans to micro-entrepreneurs.

Suggesting a roadmap to promote and develop marginal, small and medium enterprises (MSMEs) in UP, Assocham has recommended for adopting a consortium approach to solve the marketing related problems of the MSME sector.
Besides, it is also suggested to periodically review the activities of ensuring effective financial arrangements for the MSMEs.
Technological up gradation is another significant area, which requires immense government attention to promote growth and development of MSME sector in UP.

It also suggested that a comprehensive, district-wise drive must be undertaken by the state government through Directorate of Industries for identifying sick units that are potentially viable.


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