Indian Economy News

Uttar Pradesh government plans e-commerce booster shot for the MSME sector

  • IBEF
  • January 10, 2025

The Uttar Pradesh (UP) government is set to enhance the growth and competitiveness of micro, small, and medium enterprises (MSMEs) by connecting 155 industrial clusters through a dedicated e-commerce platform. This initiative, spearheaded by the UP State Industrial Development Authority (UPSIDA), will support over 50,000 industrial and manufacturing units. The platform aims to link raw material suppliers, manufacturers, and vendors of finished goods within these clusters, facilitating direct business-to-business transactions. The move is expected to reduce dependence on external suppliers, lower costs, and foster business alliances within the state. 

UPSIDA Chief Executive Officer (CEO), Mr. Mayur Maheshwari, highlighted that the e-marketplace, currently testing phase, could save UP-based industries around Rs. 20,000 crore (US$ 2.33 billion) in logistics and warehousing costs. This platform aligns with the ‘Make in UP’ vision, contributing to the state’s goal of becoming a global manufacturing hub. It is also expected to boost industrial growth, create new jobs, and increase Goods and Services Tax (GST) revenue by 7-10%. Furthermore, the UP government is working to expand its industrial land bank, with a target of acquiring 150,000 acres for infrastructure development, up from 54,000 acres already in possession. The state aims to grow the land bank to 82,000 acres by 2024-25, further strengthening the local economy and streamlining procurement processes. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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