Industry

Table 19 : MSME- A Snapshot

[Source: Directorate of Economics & Statistics- Unorganized Sector Survey]

13. Data on employment in manufacturing is significantly different when compared across the source agencies. The populating census data gives a number of around 77,000 for household industries. Unorganized manufacturing survey gives a number of 59,000. The establishment and number of persons based on other survey gives a number of a little over one lakh for manufacturing. However, based on these and given the manufacturing base in the district, one can take that manufacturing in Meerut may be employing around one lakh persons and total employment in industrial sector could be somewhere between 2 to 2.5 lakhs. Construction is the single largest sector in Meerut accounting for 25 per cent of gross value added. It has been a buoyant sector with preliminary skill needs and as such would perhaps be employing more than one lakh persons.

Table 20 : Establishments and Employment in Industry in 2013

[Source: Uttar Pradesh- District Fact Book: India state Publications 2022]

14. The Uttar Pradesh government launched its Industrial Investment and Employment Promotion Policy 2022 in November 2022 to enable the state's air of becoming a one trillion-dollar economy. With the Up Global Investors Summit 2023 at sight, the state passed the new umbrella policy of the State.

• The policy aims at creating a progressive, innovative, and competitive industrial ecosystem generating employment in the state while mobilizing investments from across the world.
• Ensuring a continuity of the successes of Industrial Investment and Employment Promotion Policy 2017, the new umbrella industrial policy of the State reflects the voice of industries of the State & the country.
• Offering a unique flexibility to the investors by extending a one-time choice of choosing an option amongst three 'mutually-exclusive' options of Investment Promotion Subsidy, Capital Subsidy and Net SGST reimbursement, the policy categorizes investments into four major categories Large, Mega, Super Mega and Ultra Mega.
• With India at a bright spot in the global economy today, the policy is an excellent offering for foreign as well domestic investors. It complements as well as supplements various schemes and policies of the Centre to offer one of the most attractive and optimal incentive packages for investments in the country (Box 7)

15. During pandemic in 2020-21, a stimulus package announced for MSME sector has the following components:
    • Collateral free loan of Rs 3 lakh crores to restart work and save jobs.
    • Subordinate debt provision of Rs 20,000 crore for 2 lakhs stressed MSMEs. Besides, there will be Rs 50,000 crore equity infusion and a fund of funds with corpus of Rs 10,000 crore to help these units expand capacity and help them list.
    • The Central Government and PSUs will clear all MSME receivables in next 45 days.
    • An interest subvention of 2 per for Mudra/Shishu loans up to Rs 50,000.
    • Special scheme for street vendors to provide Rs. 10,000 of working capital.

16. With two thirds of the enterprises being unregistered and more than half of the registered enterprises not seeking institutional credit support, these bailout packages were of limited significance. There are usually three biases in any bailout package, first it covers the units which are easily reachable (road side bias), second, the units with which the institutions or authorities are familiar (nearness bias) and thirdly the units which are relatively more resilient (have greater immunity) or (bias of the comfort) and these do not even bring the most vulnerable ones into any reckoning of bailout packages.

17. Though the provisioning for basic facilities such as land, labor and capital is listed as the last in the list, they become the necessary and a very important role played by Government. However, that is not the sufficient condition. The type of institutions required to increase the competitiveness of the cluster are:

18. An entrepreneur is a catalyst for economic development, a change agent with vision and creativity. Potential entrepreneurship development requires to be supported by a business ecosystem that is conducive to its emergence, easy finance, expertise, infrastructure, skills and a high level of motivation for change. Government of Uttar Pradesh has conceived an Integrated Business Development, which integrates various government schemes, provides integrated business development services, handholding of MSMEs starting from registration to promotion of their product/service in a competitive landscape and networking of entrepreneurs. The export promotion policy conceives of providing necessary export-related assistance and services in key focus areas of handicrafts, agriculture and processed food products, engineering goods, handloom and textile, leather products, carpets and rugs, glass and ceramic products, wood products, sports goods, defence products, services sectors covering education, tourism, IT and ITES, medical value travels and logistics. The scheme offers funding for participation in international fairs, study tours abroad, trade delegations, publicity, etc. Knowledge is now the key driver of growth.

19. Meerut has widespread industrial spectrum and each sector has their unique concerns, strategy and development targets. Each sector has different expectations. While generalisation does help in policy formulation, it is appropriate that industry specific concerns are taken note of. The involvement of stakeholders and understanding their concerns is equally important as what is being delivered. After all, it is these industries and entrepreneurs who would not only push the growth and facilitate getting to the target. They are both the contributors and beneficiaries of the growth process. For the study, discussions were held with representatives of major industry and services segments. We will look at the concerns and expectations of each important industry in Meerut.

20. For many of the issues raised by Industry, industrial park or an industrial could be an answer. A typical cluster could be turning point for excellence in production, inter firm learning, technology upgradation, labour mobility beside being articulating common concerns more effectively (Box 10).

21. The industry specific analysis, however, leads to three interesting observations. First, the employment in manufacturing sector is significantly higher than what the other data sources tell. Most of these workers operate from home and may have not surfaced in official data. Second, the industry is scattered and unorganised to a significant extent and an innovative approach could only improve their conditions. Finance, technology, marketing and recognition are their common problems. A fixed location cluster may not be an answer to their concerns. Third, while these industries are to an extent vocal, they have not been able to articulate their concerns effectively. These industries have significant potential and also non-farm employment source with possibility of a significant increase in female labour force participation. Further since they are outside the LFPR and workers, their GDP contribution may perhaps be underestimated.

22. While skill development and training (including the craftsmen training) has been recognised as a necessary input, their accessibility is still an issue. Further, training and placement are two sides of the coin and without placement, only the unutilized potential will be created. In PM Kaushal Vikas Yojana and the Craftsman Training, placement record is not satisfactory. Industry Associations' involvement, regular updating of course design and continuous research on skill sets that are in demand are essential ingredients.

23. While traditional industries are needed to be nurtured, there is tremendous scope for new set of industries in the district. The digital technology has changed the environment and eco system of manufacturing. It is kind of destructive construction and it needs to be recognised upfront. There are four areas where there is additional scope of green field investment. In case of Meerut, with somewhat innovative workforce such transition and adoption of new emerging industries/sectors is less difficult.

24. Government of India, along with Make in India has also introduced a scheme of product linked incentives. State Government has also identified Sports Goods and Textiles as the two industries as part of One District One Product. These are innovative schemes and entrepreneurs need to inform of the opportunities that these schemes offer.