Lucknow, 06 December: The incentives and policies introduced by the Yogi Adityanath government in Uttar Pradesh have given a new dimension to the state’s industrial growth over the past few years. According to the government data, more than 96 lakh MSME units are currently active in the state, the highest in the country. Supported by the UP MSME Policy 2022, these units have not only increased industrial production but also generated direct and indirect employment for more than 2 crore people. Government reforms and an investor-friendly environment have strengthened these enterprises.
MSME credit flow in the state has increased rapidly. In FY 2025, the MSME sector received ₹2.48 lakh crore in loans. This is 20% higher compared to ₹2 lakh crore in FY 2024. By FY 2026, this credit is estimated to rise to ₹4.46 lakh crore, indicating a 52% growth. Through schemes such as Prime Minister's Employment Generation Programme (PMEGP), subsidies ranging from 25% to 35% are being provided, offering major relief to micro and small entrepreneurs.
The government has prioritised digital technology to simplify the process of setting up industries. Platforms like Nivesh Mitra and the single-window system have made industrial approvals extremely convenient. With all facilities from application to approvals available online, industries have saved both time and cost. The MSME One Connect Portal has simplified processes like ZED certification and PMEGP applications.
Women entrepreneurship has been given special priority by the Yogi Adityanath government. Of the 1.4 crore women-led MSMEs across the country, a significant share from Uttar Pradesh is progressing rapidly. Discussions at the recently held FICCI FLO National Convention in Lucknow clearly highlighted that the state has emerged as a new center for women’s economic empowerment. Through skill development missions, women are receiving training in beauty parlour work, computer courses, stitching–embroidery, handloom, incense stick manufacturing, sanitary pad production, and health-nutrition products. Networking platforms have opened new opportunities for women investors.
Chief Minister Yogi Adityanath has stated that Uttar Pradesh is now among the leading states in terms of women’s safety and self-reliance. Mission Shakti, One District One Product (ODOP), Women Self-Help Groups, and the Startup Policy have made lakhs of women economically capable. The government aims to make Uttar Pradesh the largest women-led startup hub in the coming years. The zero-tolerance policy towards crime has created a safe business environment, increasing investor confidence.
The estimated 52% increase in MSME credit by FY 2026 will accelerate the state’s journey toward becoming a one trillion-dollar economy. According to NABARD’s UP State Focus Paper, the total credit potential for priority sectors in FY 2026 is assessed at ₹7.69 lakh crore ₹1.96 lakh crore or 34% higher than FY 2025. These initiatives clearly indicate that Uttar Pradesh is moving strongly towards becoming the national hub of micro, small, and medium industries. The new momentum in industries and the expanding support for entrepreneurship are bringing significant transformation to the state’s economic landscape.
