UP government eyes MSME opportunities in US-China tariff war

The UP government is getting ready a new export policy with the aim to capitalise on the US-China tariff war with the medium, micro and small enterprises sector being at its centre.

The present export policy was formulated in 2020.

China is the largest exporter ($148 billion) of everyday goods to the US, according to government data. In comparison to China’s 72 per cent share, India’s is only two per cent. Most of these exports are from MSME units. UP tops the country with some 96 lakh such units and thus is uniquely poised to take advantage of the situation.

The state is currently the fourth largest exporter in the country. It stands first amongst all landlocked states in terms of exports. The largest chunk of these exports is in the form of carpets. Then come leather goods, handicrafts and processed meats. Telecommunication equipment and man-made fibres have also been steadily climbing up the export ladder.

For branding the products of UP in the country and the world, the government will be part of the international trade show at India Expo Centre and Mart in Greater Noida from 25 to 27 September. But to promote Brand UP, the state will advertise itself heavily around the country and at all major railway stations and airports much before the expo. An export promotion fund will also be created in the proposed export policy for the promotion of Brand UP in the country and the world.

In addition to an export policy, the government is also working on a new leather and footwear export policy. The state currently has a 46 per cent share in the space. Uttar Pradesh will be the second state after Tamil Nadu to have a dedicated policy for the sector. The implementation of this policy and the increase in exports will have an impact on Kanpur, Unnao and Agra.

A game changer for MSME has been the One District One Product Scheme. It has increased the state’s exports from ₹88,967 crore to more than two lakh crore rupees, since it was introduced in 2018. Now the government's target is to triple it by 2030.

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