The Uttarakhand government should establish Enterprise Development Centres (EDCs) to support and sustain entrepreneurs in the Micro, Small, and Medium Enterprises (MSME) sector, according to a study conducted by the MSME Export Promotion Council (MSME EPC). The report highlights the urgent need for intervention as nearly 25% of the state’s 58,000 registered MSMEs are struggling for survival, putting thousands of jobs at risk.
Challenges Facing MSMEs in Uttarakhand
The study pointed out several critical issues affecting MSMEs, including a lack of technical know-how, inadequate managerial skills, and limited access to financial resources. These challenges have made it difficult for many small businesses to grow into self-sustaining enterprises.
To address these gaps, MSME EPC Chairman D.S. Rawat emphasized the need to upgrade industrial clusters by improving facilities such as tool rooms, innovation centers, and testing laboratories. He suggested that MSME clusters should collaborate with companies possessing advanced innovation infrastructure to strengthen their competitiveness.
Rawat also highlighted that many MSMEs lack expertise in product development, technology adoption, and marketing strategies. To bridge these gaps, he recommended building networks of development service providers that can offer customized solutions in these key areas.
Tourism as a Growth Driver for MSMEs
The study also underscored the importance of the tourism sector in driving economic growth in Uttarakhand. To attract more tourists, it suggested that the government should develop attractive package tours in collaboration with private tour operators and travel agencies.
“The tourism industry is crucial for Uttarakhand’s economy. It has tremendous potential to stimulate job creation and business opportunities for MSMEs in the region. The government should focus on developing tourism infrastructure, maintaining tourist destinations, and modernizing transport hubs such as airports and railway stations,” said Rawat.
Agriculture & Organic Farming – A Key Priority
Another key area highlighted in the study is the agriculture sector, which faces severe challenges in the hilly regions. The migration of people to metro cities and frequent destruction of crops by wild animals have made farming unsustainable.
To tackle these issues, the study urged the government to implement its “Uttarakhand Organic” policy and promote organic farming and horticulture. However, Rawat pointed out that so far, no significant steps have been taken to support organic agriculture in the state.
He suggested that expert associations should be engaged to train farmers on seed selection, certification, and marketing strategies to help them tap into national and international markets.
Investment & Infrastructure Development
Despite challenges, Uttarakhand has attracted ₹33,737 crore in new investment projects in 2023-24, compared to ₹11,818 crore in 2022-23. However, most of these investments have been directed towards infrastructure projects such as highways rather than MSME development.
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As of now, the state has ₹2,83,528 crore worth of outstanding projects, while projects under implementation stand at ₹1,59,987 crore. The study emphasizes that more investment should be directed towards MSMEs and sustainable job creation to ensure balanced economic growth.
The study concludes that Uttarakhand’s MSME sector needs structured support through Enterprise Development Centres (EDCs) to boost entrepreneurship and make small businesses globally competitive. It also calls for stronger government intervention in tourism, agriculture, and organic farming to ensure long-term economic sustainability. With the right policies and strategic investments, Uttarakhand can unlock new opportunities for MSMEs and strengthen its overall economy.