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 lakh crore. 

During the last two fiscals, 2018-19 and 2019-20, the MSME exports from the state stood at Rs 1.14 lakh crore and Rs 1.20 lakh crore.

According to UP’s 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 coronavirus (COVID-19) pandemic. 

He said the state was looking to leverage the unfolding global trade situation and woo the companies to set up units in UP. 

“The state will try to match the global demand for manufactured goods by increasing production so that UP’s exports increase to Rs 3 lakh crore in three years,” he said.

The state government had earlier planned to double the MSME exports to Rs 2.40 lakh crore in three years compared to the corresponding figure of Rs 1.20 lakh crore in the 2019-20 financial year. 

However, the quantum leap by 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 state government to further upscale its MSME export target to Rs 3 lakh crore.

Meanwhile, the state government will commission a study on other industrialised states like Andhra Pradesh, Tamil Nadu and Gujarat to cut the per unit production cost of industry for increasing the competitiveness and increasing the 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 that the state would give impetus to the production of such goods which are in high demand internationally for optimising benefit.

Besides, UP will develop an export hub in each of the 75 districts of the state, that will be synchronised with the Yogi 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, 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. 

He said the state had identified 12 segments, which had 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. 

Sehgal said the government was also planning to tap the global textile chain.