Uttar Pradesh launches new initiatives like the CM Yuva app and Youth Adda centers to support MSMEs, aiming for 15% annual growth. With over 96 lakh units, the state’s MSME sector drives economic growth, offering financial aid, digital tools, and market access to empower small businesses and create jobs.
Uttar Pradesh Rolls Out MSME Support Initiatives
On International MSME Day 2025, Uttar Pradesh Chief Minister launched two key programs to bolster the state’s micro, small, and medium enterprises (MSMEs), a sector comprising over 96 lakh units and employing millions. The ‘CM Yuva’ mobile app and ‘Youth Adda’ centers aim to foster entrepreneurship among young people, providing digital platforms for business guidance, funding access, and skill development. Minister Rakesh Sachan emphasized the sector’s rapid growth, contributing nearly 60% to UP’s industrial output and 46% to its exports.
The state government is offering financial assistance of up to Rs 14 crore and affordable land banks in areas like Aliganj, Kanpur, to support MSME expansion. The Promoting Leadership and Enterprise for Development of Growth Engines (PLEDGE) scheme encourages private players to develop industrial parks, further boosting infrastructure. The PM MITRA Park in Hardoi is expected to generate over 1 lakh jobs, benefiting youth in Gautam Buddha Nagar, Hardoi, and Lucknow.
Despite these efforts, challenges persist. Deputy Chief Minister Brajesh Pathak noted a lack of awareness among entrepreneurs about available platforms, hindering their ability to leverage government schemes. Minister Kapil Dev Agarwal engaged with the business community to address doubts and streamline access to resources. Invest UP’s Additional CEO, Shashank Chaudhary, highlighted the state’s robust MSME ecosystem, one of the largest in India, as a testament to its entrepreneurial spirit.
The Procurement and Marketing Support (PMS) Scheme is empowering MSMEs by addressing market access challenges. It provides financial aid, expert consultancy, and skill-building workshops tailored to sectors like textiles, food processing, and handicrafts. Eligible businesses must be Udyam-registered with GS1 India barcode registration to access these benefits, enabling them to compete in wider markets, including exports.
Digital transformation is also a focus, with 67% of Indian MSMEs adopting technologies like ERP, CRM, AI, and IoT. In UP, MSMEs are expanding into IT services and digital marketing, contributing to technological growth. However, challenges like limited credit access, high compliance costs (Rs 13-17 lakh annually), and a skilled labor shortage remain hurdles. Over 99% of MSMEs lack bank credit, threatening job creation and economic growth.
The Employment Linked Incentive (ELI) Scheme, approved by the Union Cabinet, offers Rs 15,000 in salary support for first-time workers and incentives for companies hiring more employees, benefiting MSMEs. The Union Budget 2025 doubled the credit guarantee cover for micro and small enterprises to Rs 10 crore, unlocking Rs 1.5 lakh crore in credit over five years. These measures aim to formalize the sector and enhance resilience.
Disclaimer: This article is based on recent news reports, government announcements, and industry insights available as of July 2, 2025. Information is sourced from credible outlets like Times of India, Business Standard, and India.com. Readers are advised to verify details through official government portals for the latest updates.