Lucknow: While UP recorded the highest growth in credit input in the country at 21% between December 2016 and December 2017, its total credit flow of Rs 57,000 crore was half of Maharashtra, said an Assocham report released at the MSME Conclave in the city on Thursday. 

The report states that the single window system for improving ease of doing business is not functioning well. “There are several windows behind the single window, resulting in processes being cumbersome. The government needs to remove the hurdles blocking the development of sector,” it said. 

UP has 14% of the total MSMEs in the country — around 89 lakh — and the state’s exports from them totalled Rs 89,000 crore in 2017-18. 

“Industries have been complaining of high industrial tariffs in the state, due to high cross subsidies. This increases the overall cost of doing business for industries. MSMEs also face challenges in getting access to finance from state finance corporation and banks,” it said, adding that the state lacks efficient land bank system. 

“A lot of land has been acquired by government but is lying vacant and has not been allotted for development of industries.”

Addressing the conclave, CM Yogi Adityanath said, “MSMEs will play a significant role in making India $5 trillion economy. Around 14 lakh youth got jobs in last 2.5 years because of MSMEs.” 

“MSME is the growth engine of state and will play a huge role in defence corridor as Centre has fixed categories for which they will be allowed to invest,” he said. 

Published On : 30-08-2019

Source : Times of India