UP Sees Major Rise in MSME Growth as Government Pushes Credit, Digital Reforms and Women Entrepreneurship

Lucknow | December 7, 2025 Uttar Pradesh is witnessing a major rise in its micro, small and medium enterprises as the state government continues to push credit expansion, digital reforms and strong support for women entrepreneurs. According to officials, more than 96 lakh MSME units are currently operating in the state, which is the highest in the country. These units together provide jobs to around 2 crore people, making the sector one of the strongest pillars of the state’s economy. The state government believes these numbers show that Uttar Pradesh is moving quickly toward becoming a national hub for MSMEs. The biggest boost this year has come from the increase in credit flow. In the financial year 2025, MSME credit touched ₹2.48 lakh crore, which is nearly 20 percent higher than the ₹2 lakh crore recorded in FY 2024. The government expects that by FY 2026, this credit will rise further to ₹4.46 lakh crore, marking a growth of around 52 percent. Officers say this rapid expansion has been possible because of central and state schemes that support entrepreneurs with subsidies and financial assistance. Schemes like PMEGP are offering subsidies of 25 to 35 percent, which encourages small business owners to start or expand their units without fear of high costs. Another major reason behind the growth is the push toward digital systems. The state has been promoting platforms such as Nivesh Mitra and the single-window system so that entrepreneurs can complete applications, approvals and certifications online without running around offices. The MSME One Connect Portal has also made ZED certification and PMEGP applications easier. Officials say these online tools save time, reduce paperwork and make it simpler for new businesses to start operations. A strong rise in women entrepreneurs is also shaping the future of the state’s MSME sector. Out of 1.4 crore women-led MSMEs in India, a large number are now coming from Uttar Pradesh. Many women in both rural and urban areas are joining skill development programs that train them in different fields, including stitching, beauty services, handloom, sanitary product manufacturing and other trades. These training programs are helping women start their own businesses and become financially independent. Networking platforms in the state are encouraging more women to join the startup ecosystem and even become investors. Government schemes are also focusing on providing women with safety, confidence and resources. Programs like Mission Shakti, One District One Product, Women Self-Help Groups and the Startup Policy are giving women opportunities to grow their businesses and get access to credit. The state government’s strict stance on crime and commitment to creating a safe environment has also helped increase investor trust. Officials say that Uttar Pradesh is now on the path to becoming a one trillion-dollar economy. With the MSME sector expanding at a fast pace and credit expected to grow by over 50 percent in the next year, the state is preparing for even bigger industrial development. NABARD has estimated that priority sector credit will reach ₹7.69 lakh crore in FY 2026, which is 34 percent higher than the previous year. This growth, combined with digital reforms and strong entrepreneurship, shows that Uttar Pradesh is steadily positioning itself as a leading center for micro, small and medium industries in India. UP Sees Major Rise in MSME Growth as Government Pushes Credit, Digital Reforms and Women Entrepreneurship Uttar Pradesh’s MSME sector is seeing one of its strongest growth phases, and the change is clearly visible across the state. With more than 96 lakh MSME units now running in UP and providing jobs to about 2 crore people, small industries have become the backbone of the state’s economy. The big push has come from the rise in credit flow. In FY 2025, MSME credit touched ₹2.48 lakh crore, up from ₹2 lakh crore last year. The government expects this amount to grow to ₹4.46 lakh crore by FY 2026, showing how fast the sector is expanding. Schemes like PMEGP, which offer 25–35% subsidies, have helped thousands of small business owners set up or expand their units with confidence. Digital reforms are also changing how businesses work. Platforms such as Nivesh Mitra, the single-window system, and the MSME One Connect Portal now allow entrepreneurs to complete applications, approvals and certifications fully online. This saves time, cuts paperwork and makes the process smoother for new entrepreneurs. A major highlight is the rise of women entrepreneurs. UP now has one of the highest numbers of women-led MSMEs in India. Through skill training in stitching, beauty services, handloom work, sanitary product manufacturing and more, many women are building successful businesses. Supportive schemes like Mission Shakti, ODOP, Self-Help Groups and the Startup Policy have made the environment even stronger and safer for women to grow. With credit expected to rise by over 50% next year and investor confidence increasing, UP is moving steadily toward its dream of becoming a one trillion-dollar economy and a national MSME powerhouse.