Adityanath govt targets MSME exports worth Rs 3 trn in next three years

UP to woo companies exiting China after the Covid-19 outbreak

The Uttar Pradesh government is aiming to increase its micro, small and medium enterprises (MSME) exports in the next three years to touch the ambitious mark of Rs 3 trillion.

During FY19 and FY20, MSME exports from the state stood at Rs 1.14 trillion and Rs 1.20 trillion, respectively.

According to UP MSME and Export Promotion Minister Sidharth Nath Singh, the state government is in the process of rationalising its investment and export promotion policies to attract companies exiting China owing to the resentment over the outbreak of the coronavirus (Covid-19) pandemic.

He noted the state was looking to leverage the unfolding global trade situation and woo the companies to set up units in the state. “The state will try to match the global demand for manufactured goods by increasing production, so that UP’s exports increase to Rs 3 trillion in three years.”

Earlier, the state government was planning to double its MSME exports to Rs 2.40 trillion in three years compared to the corresponding figure of Rs 1.20 trillion in the 2019-20 financial year.

However, the quantum leap of 10 places by UP from 12th to 2nd position in the latest ‘Ease of Doing Business’ rankings announced by the Centre has apparently boosted the confidence of the Adityanath government to further upscale its MSME export target to Rs 3 trillion.

Meanwhile, the state government will commission a study of other industrialised states viz. Andhra Pradesh, Tamil Nadu and Gujarat to cut the per unit production cost of industry for increasing the competitiveness and increasing profitability of the industrial units in UP.

“UP is a landlocked state without a port. Therefore, to increase exports, we will promote air traffic, wherein the proposed Jewar International Airport apart from Varanasi, Lucknow and Kushinagar airports will be developed for cargo traffic,” the cabinet minister said, adding the state would give impetus to the production of such goods, which are in high demand internationally for optimising benefit.

Besides, the state will develop an export hub in each of the 75 districts of the state, which will be synchronised with the Adityanath government’s flagship one district one product (ODOP) scheme for boosting the local economy. In the first phase, export hubs will be set up in prominent industrial areas namely Varanasi, Moradabad, Agra, Firozabad, Gorakhpur and Aligarh.

Meanwhile, UP additional chief secretary, MSME and export promotion, Navneet Sehgal said the government was working on its agenda of developing the state as an electronics manufacturing hub.

The state has identified 12 segments, which have high demand in the global market, including electronic machinery, minerals, vehicles spares, pharmaceuticals, plastic, pearls and precious stones, medical devices, iron and steel, organic chemicals etc. The government is also planning to tap the global textile chain.