To help the economy recover from the disruption took place due to lockdowns states are being encouraged to promote MSME.

Uttar Pradesh government will set up industrial parks for micro, small and medium enterprises (MSME) in six of its most industrialised districts. They are Varanasi, Agra, Kanpur, Moradabad, Gorakhpur and Azamgar, and district has invited proposals from consultants for it.

The Centre relaxes the eligibility criteria for the MSME sector for the Rs 3 lakh-crore credit guarantee scheme that was announced in May as part of the ‘Aatmanirbhar Bharat’ package hence changing the definition of MSME.

UP has decided to set up MSME parks in Varanasi, Agra, Kanpur, Moradabad, Gorakhpur and Azamgarh. The state has the largest number of MSM units in the country at 14%.

In a document inviting consultants for the project has listed down several problems. Citing the example of Varanasi, the document says the city generates up to Rs 4,500 crore annually from sale of silk products. The industry still uses traditional ways to dye cloth and faces the issue of discharging the water.

For textile sector the objective is to provide industrial ecosystem to the existing units of the clusters. They are working on how to increase export and strengthen the supply chain. Also leveraging the hidden strengths to expand inclusive development agenda and increase employment opportunities.