Mixed experience under BJP government: West UP MSMEs

Small and medium enterprises (MSMEs) in western UP say they have had a “mixed experience” under the current BJP government. Although they are on the same page as far as the improved law and order situation in the region is concerned, they felt that when it comes to growth of businesses and their grievances being addressed, the experience has been wanting. In the largely agricultural landscape of UP, western UP is more industrialised than the central and eastern parts of the state. With about 90 lakh units, UP houses the highest number of MSMEs in the country.

As the region goes to polls in the first two phases on February 10 and 14, ET caught up with a clutch of MSME owners and industrial associations in western UP. Most businessmen said the interests of MSMEs were not looked after satisfactorily. Even so, they said they will vote for the BJP primarily because of the improved law and order that has brought down “localised threats”, ensuring a sense of safety.

Traditionally, the business class, comprising mostly upper castes such as Brahmins and Baniyas, have largely been BJP or Congress supporters with the former becoming their preferred choice in UP after Congress’ decline. “It has been a mixed experience under the BJP government. Localised threats exist everywhere, whether you go to Manipur or J&K. They have definitely come down here; but on the business front, there has been minimal support to industry. At least 30-40% units have closed down,” said BR Bhati, owner of a cable unit in Greater Noida which had to shut down during the pandemic with crores of dues still unpaid by state government enterprises. Bhati, who heads the Greater Noida and Bulandshahr division of the Indian Industries Association, said basic requirements such as roads in industrial areas are bad.

“In Muzaffarnagar, the mahaul used to be such that businessmen were forced to keep a low profile. Even if they had money and wanted to build a grand house, etc., they did not because they feared anti-social elements will harass them through extortion. A big change has come on this front in the last five years,” he said even as he pointed out a perpetual bias in favour of big industries across governments.

A businessman, on conditions of anonymity, said the SP used to “shield Muslims” who have been found to be involved in most of these threats and crimes like car-snatching etc, and would not vote for the SP-RLD alliance due to this reason.

The UP government claims to have given a huge amount of loans to MSMEs. But Anurag Agarwal, who runs Micro Electrics in Meerut said that instead of giving MSMEs loans, there should be speedy payment of their dues by government agencies. Agarwal said that industrial areas in most of western UP were in a “bad shape”, reiterating the issue of lack of piped water supply.

Rajiv Goel, who runs a paper making machinery unit in Ghaziabad, said, “A lot was promised, but the CM does not seem to have a good understanding of how businesses are run. UP could have become a second Gujarat but at least 30% MSMEs have shut down because of the high handedness of the officers,” he said.