UP Government Pushes for Higher MSME Growth, Signs ₹19,000 Crore MoUs in Davo

The lending to Micro, Small, and Medium Enterprises (MSMEs) in Uttar Pradesh is projected to increase by 52% in the next financial year (2025-26), reaching ₹4.46 trillion from ₹2.92 trillion in FY25.

According to UP Finance Minister Suresh Khanna, ensuring an easy credit flow and fostering high growth in priority sectors—including agriculture and MSMEs—are essential for the Yogi Adityanath government’s goal of achieving a $1-trillion state economy.

The UP State Focus Paper prepared by NABARD estimates that the state’s total credit potential across priority sectors will reach ₹7.69 trillion in FY26, a 34% increase from ₹5.73 trillion in FY25.

• Agriculture credit potential is projected at ₹2.77 trillion for FY26, up from ₹2.46 trillion in FY25.
  
• Other priority sectors are expected to have a credit potential of ₹46,000 crore, including ₹21,000 crore for housing loans and ₹6,000 crore for export credit.
  
  Unveiling the UP State Focus Paper, Suresh Khanna emphasized that the state is prioritizing infrastructure development, ease of doing business, and improved law and order to attract investments.

• Following the UP Global Investors’ Summit 2023, the state has implemented over 14,000 projects worth ₹10 trillion, with additional ₹6 trillion worth of projects in the pipeline.
  
• At the World Economic Forum Summit in Davos, UP signed MoUs worth ₹19,000 crore, reflecting strong MSME growth.

The UP government has urged banks to recognize the growing credit potential, particularly in agriculture and allied sectors, including farm mechanization, plantation, fisheries, animal husbandry, and storage/marketing yards.

Additionally, the state has asked banks to enhance credit flow and improve the Credit-Deposit (CD) ratio, especially in Eastern UP and Bundelkhand. UP has set a CD ratio target of 65% by March 2025 to support capital formation and economic growth.