In a bid to create more job opportunities for young people in Uttar Pradesh, the Yogi Adityanath-led government has introduced a major new initiative called the Mukhyamantri Yuva Udyami Vikas Abhiyan. This initiative is aimed at helping educated youth become self-employed by providing financial assistance through interest-free loans. The announcement was made after a cabinet meeting chaired by Chief Minister Yogi Adityanath on October 1, 2024.
The government’s focus with this scheme is to uplift the state’s economy by encouraging the youth to start micro enterprises, particularly in sectors like Khadi, village industries, handloom, textiles, and MSMEs (Micro, Small, and Medium Enterprises).
What the Scheme Offers
The Mukhyamantri Yuva Udyami Vikas Abhiyan is designed to support youth in establishing their own businesses. Under this scheme, financial aid will be offered to 1 lakh educated and trained youth in the state each year. The scheme has set a target to establish 10 lakh micro-units in the next 10 years, with funding provided to one lakh youth every year. The maximum loan amount is Rs. 5 lakh per person, and the best part? It’s interest-free.
Eligibility Criteria for Youth
The scheme is open to those with a minimum educational qualification of 8th grade. Preference, however, will be given to candidates who have completed their 12th grade. Additionally, the applicants need to have undergone training under various government schemes, such as:
- Vishwakarma Shram Samman Yojana
- One District One Product (ODOP) Scheme
- Scheduled Caste/Tribe Training Schemes
- Skill Development Programs run by the Uttar Pradesh Skill Development Mission
This ensures that applicants not only receive financial support but are also equipped with relevant skills to run a successful business.
Interest-Free Loans for Micro-Enterprises
The key highlight of the scheme is the interest-free loan. Each year, 1 lakh youth will receive loans up to Rs. 5 lakh to start their own micro-enterprises. These loans are meant to encourage self-employment among young people, particularly those from rural and urban areas, helping them establish and grow their own businesses.
If the youth successfully run their business and wish to expand, they can apply for additional loans in the future. Those receiving benefits for the first time under the scheme can be eligible for loans up to Rs. 10 lakh in the second phase.
Subsidy and Digital Incentives
The government is also offering subsidies on loans for projects up to Rs. 5 lakh in the micro and service sectors. Another incentive to promote digital transactions is an additional grant of Rs. 1 per transaction, with a maximum benefit of Rs. 2,000 per year for youth using digital payments. This not only makes the business more streamlined but also promotes transparency and efficiency.
The Role of MSMEs
The Micro, Small, and Medium Enterprises (MSME) sector is considered the backbone of the state’s economy. The Yogi government’s focus on this sector is to further boost employment generation. By facilitating the establishment of new micro-units, the government is fostering an environment where entrepreneurship and innovation can thrive.
According to Rakesh Sachan, the Minister for MSMEs, Khadi, Village Industries, Sericulture, Handloom, and Textiles, the scheme is a well-planned initiative to boost employment across Uttar Pradesh. In his words, “Our goal is to link the youth with self-employment opportunities and improve the state’s economy through micro-enterprises.”
Focus on Farmers: UP Agri Scheme
Alongside this youth employment drive, the Uttar Pradesh government also approved the UP Agri Scheme. This scheme is specifically aimed at increasing the income of farmers in areas like Bundelkhand and Eastern Uttar Pradesh, which have traditionally lagged behind in terms of agricultural productivity compared to Western UP.
Under this initiative, efforts will be made to boost agricultural productivity in the districts of Jhansi, Chitrakoot, Gorakhpur, Varanasi, Azamgarh, and more. Agriculture Minister Surya Pratap Shahi mentioned that specific strategies will be employed to enhance the productivity of these regions, thereby contributing to the state’s overall growth.
Boost to Higher Education
In another progressive move, the cabinet also greenlit the Uttar Pradesh Higher Education Promotion Policy, 2024. This policy aims to promote private investment in the state’s higher education sector, meeting the increasing demand for quality education.
Yogendra Upadhyay, the Higher Education Minister, pointed out that the policy will not only help students receive quality education but also create employment opportunities through the establishment of new private universities. These universities will get several benefits, including stamp duty exemption and capital subsidies, with additional incentives for institutions ranked in the top 50.
The introduction of this education policy reflects the government’s comprehensive approach toward uplifting both the economy and education standards in Uttar Pradesh.
