A new e-commerce portal for the benefit of micro, small, and medium enterprises (MSMEs) enterprises will be launched by the Uttar Pradesh government. It is being designed by the UP State Industrial Development Authority (UPSIDA) to link 155 industrial clusters. The idea is to provide support for over 50,000 units of manufacturing by bringing together raw material suppliers, manufacturers, and finished goods vendors. This will benefit the local companies by reducing the reliance on other outside suppliers, which in turn reduces the operating cost.
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Economic impact and employment opportunities
This is an e-marketplace where the industries of Uttar Pradesh shall save logistics and warehousing of around ₹20,000 crores. Speaking to CEO, Mayur Maheshwari, the chief executive of UPSIDA, said: "It would fit into this 'Make in UP' vision.’ Make in UP' should turn Uttar Pradesh into a world manufacturing hub". The e-marketplace would bring with it both enhanced industrial growth, as well as new employment. It is also expected to boost the state's goods and services tax (GST) revenue by 7-10%.
Strengthening local sourcing and transparency
The e-marketplace will promote the local sourcing policy and simplify procurement processes. Through this, business transactions will gain transparency. Moreover, units engaged in packaging and marketing will be brought together, so a complete value chain of an industry is ready to support its clients effectively. This will, therefore, streamline the trade relations among businesses within Uttar Pradesh by making them more effective.
Construction of an industrial land bank
The government is also working on increasing its industrial land bank along with an e-commerce initiative. More than 150,000 acres would be acquired for industrial purposes, and 54,000 acres have already been sanctioned. Development authorities have been directed by Chief Minister Yogi Adityanath to expedite land acquisition to attract private investments. The state aims to add 82,000 acres to its land bank by the end of the fiscal year 2024-25.
Overall, the Uttar Pradesh government is going to significantly strengthen local industries by launching an e-commerce platform for MSMEs. Thus, it will ease the cost burden, increase competitiveness and expand the industrial land bank to attract more investments. The initiative will be held in a manner to create an economic impact with plenty of job offerings for the residents of Uttar Pradesh.
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