Role of Manufacturing Sector increasing in State’s Economic Prosperity

Well-thought-out policies guided by Chief Minister Dr. Mohan Yadav are enabling the manufacturing sector to play a vital role in the state’s economic growth. Employment generation has also gained momentum. At present, more than 4.26 lakh manufacturing units are active in the state, strengthening the local economy along with promoting industrial self-reliance.

Foundation for Self-Reliance

Investment promotion measures undertaken by the state government have had a direct impact in the form of new industrial units. The number of registered manufacturing MSMEs increased from 67,332 in 2022–23 to 1,13,696 in 2024–25.

Direct Impact of Policy Reforms

Removing procedural bottlenecks faced by industries is among the government’s top priorities. Through the Jan Vishwas (Amendment) Bill, 2024, penal provisions imposed on industries have been rationalized. The Industrial Land Allotment System and the Single Window Portal have made land allotment and approval processes transparent and time-bound, further strengthening investor confidence.

MSME Sector Provides Employment to Over One Crore People

The MSME sector has emerged as a strong pillar of the state’s economy. Currently, more than 20.43 lakh MSME units are active across manufacturing, services, and trade sectors. This sector contributes approximately 30 percent to the state’s Gross Domestic Product and provides employment to over one crore people.

The expansion of industrial activities in Tier-2 and Tier-3 cities has not only generated employment for local youth but has also boosted small businesses, services, and ancillary industries, thereby strengthening regional balance in industrial development.

Logistics Paving the Way for Industry

With the expansion of industrial activities, strengthening logistics and connectivity became essential. Accordingly, continuous efforts are being made to develop multi-modal logistics parks, inland container depots, and to connect industrial areas with improved road and rail networks.

Projects linked to the PM Gati Shakti National Master Plan have helped connect the state’s industries with major domestic markets and export hubs. This has reduced both transportation time and costs, enhancing the competitiveness of industries.

Preparing for the Future Economy through Startups

To ensure long-term industrial development, equal emphasis has been placed on innovation and skill development. More than 6,000 startups are currently active in the state, supported by over 100 incubation centres. The growing participation of women entrepreneurs has further strengthened the startup ecosystem.

Under the Startup Policy 2025, initiatives such as seed funding, capital funds, and the Entrepreneur-in-Residence Programme are linking youth with employment generation. In the coming years, the establishment of plug-and-play model incubation centres in every district will provide new direction to local innovation and entrepreneurship.