Q4 · UPPSC PCS Mains 2020 · GS III · 8 marks · ~125 words in the hall · 1 min read

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Explain the small-scale industries of Uttar Pradesh and discuss their role in the economy of the province.

Topic: Economic planning and NITI Aayog. Syllabus: Economic planning in India: objectives and achievements. Role of NITI Aayog, Pursuit of Sustainable Development Goals (SDGs). Same official PYQ from year-wise 2020 and Economic planning and NITI Aayog.

Revision summary

UP SSI is a cluster map: Moradabad brass, Firozabad glass, Bhadohi carpets, Kanpur–Agra leather, Aligarh locks, Meerut sports, Lucknow–Varanasi textiles. Most units are micro family workshops; ODOP (2018) brands one product per district. PMEGP, SFURTI, MSME Cluster Development, and Udyam are Union support rails. The economic role is jobs, especially for women, plus export where GI exists. Power, GST, and middlemen still cap margins, so credit and direct sale matter.

Model answer

Introduction

  • Uttar Pradesh’s small-scale and MSME base is a map of clusters: brass, glass, carpet, leather, lock, sports goods, and handloom. These units employ more people than a few large factories and carry the State’s export names.

Body

What the small-scale map looks like

  • Moradabad brass, Firozabad glass, Bhadohi–Mirzapur carpets, Kanpur–Agra leather, Aligarh locks, Meerut sports goods, Varanasi and Lucknow textiles, and Khurja pottery are the named clusters.
  • Most units are micro and small: family workshops, job-work for exporters, and One District One Product (ODOP) lines launched by the State in 2018.
  • PMEGP, SFURTI, the MSME Cluster Development Programme, and Udyam registration are the Union rails; the State adds ODOP marketing, GI support, and industrial estates.

Role in the provincial economy

  • They absorb rural and semi-urban labour that agriculture cannot hold, including women in chikankari, zari, and carpet weaving.
  • They earn foreign exchange where GI and export houses exist, but they also face GST, power, and middlemen that keep margins thin.
  • Forward links to food processing, packaging, and logistics mean a healthy SSI base supports the wider UP growth story, not only handicraft pride.

Flow diagram

flowchart TD
  C[UP clusters ODOP] --> J[Rural semi-urban jobs]
  C --> X[Exports GI]
  C --> U[PMEGP SFURTI MSME CDP Udyam]
  U --> S[Credit skill market]
  J --> E[State economy]
  X --> E
  S --> E

Conclusion

UP’s small-scale industry is cluster-and-ODOP employment, not a few plants. Brass, carpet, leather, glass, and handloom feed jobs and exports; credit, power, and direct sale decide whether that role grows.

Quick related

Students also ask

  • What are the causes of low agricultural productivity in India?

    Next question in the 2020 paper (Q5). View answer →

  • Are UP small industries only handicrafts?

    No. Leather, locks, sports goods, food processing, and light engineering sit beside crafts.

  • Does ODOP replace PMEGP?

    No. ODOP is a State branding and market push. PMEGP and SFURTI remain credit and cluster tools.

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When UPSC asked this

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More from this paper

Q1 · UPSC Mains 2020 · UPGS3 · 8 marks

What do you understand by "leaving no one behind" with reference to sustainable development goals?

Economic planning and NITI Aayog

Leaving no one behind is the 2030 Agenda pledge to reach the poorest and most excluded first. Averages hide caste, gender, disability, and geography; disaggregated data are required. NITI Aayog’s SDG India Index and Aspirational Districts name lagging units. DBT, Aadhaar, and Jan Dhan try to put transfers in the beneficiary’s account. PM-JAY, POSHAN, PMAY, Samagra Shiksha, and MGNREGA are the large service rails.

Q2 · UPSC Mains 2020 · UPGS3 · 8 marks

What are the objectives of NITI Aayog? Explain its three-years action plan.

Economic planning and NITI Aayog

NITI Aayog (2015) replaced the Planning Commission as a think tank, not a Plan-fund body. Objectives: cooperative federalism, SDG monitoring, innovation, and programme design. The Three-Year Action Agenda ran 2017–18 to 2019–20 under a 15-year vision and 7-year strategy. Priorities included jobs, farm income, infrastructure, inclusion, and governance. It was indicative; Union and State budgets still spend, while NITI tracks ranks and districts.

Q3 · UPSC Mains 2020 · UPGS3 · 8 marks

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Food processing

India grows a lot of food but processes a smaller share than developed countries. Thin cold chain, uneven farm lots, slow Mega Food Parks, and compliance costs explain the lag. PMKSY (SAMPADA) funds parks, cold chain, and agro-processing clusters. Operation Greens and food-processing PLI target price crashes and branded scale. FSSAI, FPOs, and e-NAM help quality only when supply contracts exist.

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