UP examining MSME Policy changes to encourage women entrepreneurship
- ByStartupStory | August 16, 2022
The Uttar Pradesh (UP) government is apparently considering revisions to its micro, small, and medium businesses (MSMEs) policy in order to encourage women entrepreneurship. The proposed new policy would provide women business owners with full stamp duty subsidies to acquire land for the construction of micro and small units. In addition, depending on the state location, other MSMEs would also get subsidies ranging from 50% to 100%.
Basically, the central and western UP districts, excluding Gautam Buddha Nagar and Ghaziabad, would receive a 75% subsidy on stamp duty for land acquisition, while the state government will grant a complete subsidy in the industrially backward regions of Bundelkhand and Purvanchal. A 50% subsidy has apparently been planned for Gautam Buddha Nagar (Noida) and Ghaziabad, two industrial centres.
The action aims to boost industry and encourage new investment in the state’s coffers. In order to entice private participants, the new strategy will also provide capital subsidies. In the proposed adjustments, capital subsidies for new businesses are set at 15–20% in Bundelkhand and Purvanchal and 10–20% in the state’s central and western regions. The government also hired Deloitte India earlier this month to develop a strategy for reaching the goal of a $1 trillion GDP by 2027.
UP’s assistant chief secretary for MSMEs, Navneet Sehgal, said, “We are revamping our MSME policy to make it more attractive for private investment.” In addition, the authorities would help MSMEs in the regions of Bundelkhand and Purvanchal receive interest discounts of up to 6% on working capital loans. Working with commercial banks and other financial institutions in the state will be key to solving this.
As the state gets ready for a major investment meeting later in January 2023, new policies are being implemented. On August 15, when speaking at the Independence celebration, chief minister Yogi Adityanath announced that the state had attracted investments totaling INR 4 Lakh Cr over the previous five years and was hoping to secure an additional INR 10 Lakh Cr at the next summit.
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