Uttar Pradesh accounts for 7,217 of the country's 77,723 sick micro, small and medium enterprises in the country. This was revealed in the data compiled by Reserve Bank of India (RBI) from the scheduled commercial banks, at the end of March, 2010. The only other state in the country that has recorded worse performance is West Bengal, with a total number of 16,853 sick units. According to this data, while West Bengal accounted for a total of 8,881 closed MSM units, 75,659 units were found closed in UP, next only to Tamil Nadu, with 79,778 units that were found closed at the end of March, 2010. The Fourth All India Census of Micro, Small and Medium Enterprises (MSMEs) for the reference year 2006-07 had found that a total of 4.81 lakh enterprises were closed at the end of March, 2007. In 2008, the all-India figures of sick units dropped to 85,000 (UP had 16,820 sick units then) and in 2010, the numbers have dropped again to 77,700 levels. Historically, MSMEs have produced the maximum number of jobs, next only to agriculture. But poor technology, skewed taxation policies and poor infrastructure come in the way of allowing this sector to grow. The MSME sector accounts for 8% of the country's GDP, 45% of India's total manufacturing output and 40% of the total exports. The sector also creates over 6 crore jobs from over 4 crore MSMEs that are currently operational across the country. In UP, according to government data, the total number of industries is pegged at over 3 lakh. Over 95% of these fall in the MSME sector.
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