NABARD advocates significant boost in credit flow for UP's thriving MSME sector

The National Bank for Agriculture and Rural Development (NABARD) has identified substantial growth potential in Uttar Pradesh's Micro, Small, and Medium Enterprises (MSME) sector. Acknowledging the state's leading position in the MSME industry, NABARD has recommended an escalated flow of credit to further enhance the growth of this crucial sector.

In its state focus paper, NABARD has proposed an impressive 175 percent increase in credit flow to the MSME sector, setting the target at Rs 2.91 lakh crore. This substantial increase aims to capitalize on the rapid advancements witnessed in the MSME sector, with Uttar Pradesh currently holding the top spot in the number of MSME industries across India.

NABARD's State Focus Paper for the year 2024-25 outlines an estimated credit potential of Rs 5.73 lakh crore for various priority sectors, representing a notable 52 percent increase compared to the current financial year's estimates.

The MSME sector, identified as a significant contributor to GDP, employment, and exports, is set to experience the highest surge, with a suggested increase of 175.82 percent in credit capacity, exceeding Rs 2.91 lakh crore. Uttar Pradesh's prominence in the MSME industry is highlighted in the report, emphasizing the substantial employment opportunities provided by MSMEs, Khadi, village industries, handicrafts, leather, and agro-based industries in the state.