Lucknow, July 24 (KNN) The credit line for micro, small, and medium enterprises (MSMEs) in Uttar Pradesh saw an increase of 80% to Rs 1.5 trillion in 2022-23, reported Business Standard.

This signals a surge in institutional loans to small businesses.

It is against the credit disbursement of nearly Rs 83,000 crore in 2021-22.

Accounting for 9 million MSMEs in the state, during the UP Global Investors Summit (GIS) 2023, the state got investment proposals of about Rs 35 trillion, of which the MSME sector accounted for Rs 1.6 trillion, and spanning 9,000 projects, reported Business Standard.

Meanwhile, other sectors, comprising education, housing, personal loans, and automobiles, have been laggards in sourcing commercial bank loans. They account for about Rs 11,000 crore against the annual target of Rs 28,000 crore.

The growing loan appetite of MSMEs has reinforced the stated commitment of the state government to catalyse the sector for faster growth and attain the USD 1 trillion economy target for UP.

MSMEs contribute roughly 60% to UP’s annual industrial output. According to Chief Minister Yogi Adityanath, the broad-based MSME push through the ODOP scheme and other policies has turned UP’s youth from jobseekers to job creators.

“Prior to 2017, the unemployment rate in UP was about 18 per cent, which has declined to merely 2.9 per cent since the state government has revived the MSME sector,” he recently said.  (KNN Bureau)