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Explain the small-scale industries of Uttar Pradesh and discuss their role in the economy. । UPPSC General Studies-III Mains Solutions 2020


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

( UPPSC, UP PCS Mains General Studies-III/GS-3 2020)


Small-scale industries are those industries that operate on a small scale, employing fewer workers, and utilizing less capital compared to large industries.

One district one product of Uttar Pradesh is based on small-scale industries. It comprises a diverse range of sectors like textile, carpet construction, handicrafts, leather works, food processing, engineering goods ( locks making), chemicals, and perfume and fragrant oil.

For examples-

Agra is famous for leather, Biscuits, and Clay toys in small-scale industries.

Perfume and fragment oil small-scale industries are widely found in Kannauj, Ghajipur, Jaunpur, and Lucknow.

Carpet construction small-scale industries are found in Vareilly and Mirzapur.

Matchbox industries are found in Saharanpur and Meerut.

Lucknow is famous for Torch manufacturing.

Mathura is famous for Brass statues.

Aligarh is famous for Brass locks.

Agra and Meeruth are famous for sports items.

Firozabad is famous for bangles.


The role of small-scale industries in the economy of Uttar Pradesh can be summarized in the following ways-

Employment generations- Small-scale industries are labor-intensive industries, they play a crucial role in providing employment opportunities, especially in rural areas.


Poverty reduction; Small scale industries work as income generators for both entrepreneurs and workers, which contributes to poverty reduction and livelihood improvement.


Entrepreneurship and innovation; Small scale industries act as a breeding ground for entrepreneurship and innovation. These industries promote indigenous knowledge, and creativity, and preserve traditional skills and heritage.


Regional development;  Small-scale industries promote balanced regional development by diverting various economic activities across the states. It creates economic opportunities in remote and underdeveloped areas.


Export and earning foreign currency; These industries are involved in export activities also, which leads to the contribution of foreign exchange earnings, and enhances the state’s export competitiveness.


Provides input to larger industries; These small-scale industries provide inputs, components, and services to larger industries. These integrations in the supply chain support the growth of both small-scale and large-scale industries.


In conclusion, small-scale industries in Uttar Pradesh play a vital role in the state economy by generating employment, and income, fostering entrepreneurship, and innovation, promoting regional development, contributing to exports, and strengthening industrial linkage. They are crucial for achieving inclusive and sustainable economic progress in the state.

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