Medium, Small, and Micro Enterprises (MSMEs) in Uttar Pradesh, especially artisans associated with the handloom and handicraft sector, have been able to withstand the shocks of high tariffs imposed by the US on India by using cost-cutting measures and boosting the value chain, opined UP’s industrial and infrastructure policy makers.
They further said that this relief can be further enhanced if business forums such as the Indo-American Chamber of Commerce (IACC) help small manufacturing clusters to scale up.
Participating in a panel discussion on “8 years of UP rising” at the 22nd Indo-US Economic Summit organised by the IACC held in New Delhi on Tuesday evening, Ms Kshipra Shukla, Chairperson of UPID, Department of MSME, said small-scale units said under the flagship One District One Product (ODOP) programme of the Centre, the artisan community in UP is getting both backward and market linkage support for boosting their profitability.
“ODOP has proved to be a game-changer, as it is a full capsule package. The artisans working in clusters have utilised it by incorporating advanced technologies but at the same time maintained the authenticity of their crafts,” said Shukla. “With the market-linkage support, we prepared the MSMEs with an overview of which products suit the US, Europe, or the Middle East market, and accordingly, they do the manufacturing,” added Shukla.
Deepak Singhal, former UP chief secretary, said initiatives such as “Invest UP” have been successful in attracting new investments into the state largely due to infrastructure development, especially the multiple expressways and the recently inaugurated Jewar Airport, which have enhanced the role of developmental agencies such as the Uttar Pradesh State Industrial Development Authority (UPCEDA) and the Bhadohi Industrial Development Authority (BIDA).
“We are seeing new food processing units come up and infrastructure such as cold storage being built for potato growers, while the ODOP has been a huge success. Thanks to the visionary leadership at the Centre at the state, perception with respect to India and UP is now that of transformation, and this successful model can be replicated globally,” said Singhal.
He said there was a need for IACC to set up subcommittees on trading and investment climate, which can prove to be effective in making recommendations after getting a first-hand account of UP’s industrial and growth environment.
Manoj Singh, former UP additional chief secretary, said the state was an example of institutional urban governance, and reformative measures such as the FAR policy of the state government have boosted development.
“The weak links in urban development, such as large spaces occupied by hawkers, need to be developed. Besides, addressing air pollution caused by freight movement of trucks by developing green patches has been a successful measure, which needs further boost,” said Singh. He said the idea of setting up commerce ministries at the state level was a welcome move.
Moderating the panel discussion, Mukesh Singh, Executive Council Member & Chairman, UP State Coordination Committee, IACC, said industry bodies such as IACC should identify smaller MSME clusters across UP and support them in contributing to the state and country’s GDP.
Earlier, speaking at the event, Aseem Arun, UP Minister of State (Independent Charge) for Social Welfare & SCs/STs Welfare, emphasised the need for collaboration to ensure social justice and economic equality along with growth in business partnerships.
“The partnership between the two countries should be more than just about market access. It must also be about shared human problems. Today, India stands as the fourth-largest economy in the world. But our model for high growth is unwavering because this growth is inclusive,” he said.
Pranjal Yadav, IAS Secretary for MSME and Industries, Uttar Pradesh, noted that the state has become one of India’s fastest-growing industrial hubs, backed by policy reforms and resultant investor confidence.