• Source:Jagran News Network

Following the presentation of the Union Budget 2026, the MSME sector in Lucknow has expressed optimism, particularly due to the government’s announcement of a Rs 10,000 crore Growth Fund aimed at supporting micro, small, and medium enterprises.

Lucknow, home to 2,10,000 registered MSMEs, could see significant benefits from this fund, especially the Chikan industry, which employs around 500,000 people and generates over Rs 1,000 crore in business annually. Despite its scale, small artisans in the sector lack social security and face challenges such as limited access to capital, technology, and skilled labour.

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Entrepreneurs say that a transformation in the MSME sector is crucial for Uttar Pradesh to emerge as the country’s leading economic power. Raju Mahendru, a Chikan trader, noted that the special package would be effective only if the benefits reach the right beneficiaries.

The District Industries Centre reports a steady rise in MSME numbers in Lucknow, supported by the recent growth of large companies in the Defence Corridor, including BrahMos, PTC Industries, Ashok Leyland, and Tata. Deputy Commissioner of Industries, Manoj Chaurasia, highlighted that small enterprises are being established across various sectors, and the new budget package will further strengthen this growth.

According to Rajat Mehra, secretary of the Amausi Industrial Area, the increase in MSME units will not only boost the local economy but also create employment opportunities. Vikas Khanna, Chairman of the Indian Industries Association, Lucknow Chapter, emphasised that sectors such as Chikan, food processing, dairy, Khadi, and village industries hold significant future potential under the new fund.

Industry representatives, including Vaibhav Agrawal of the Chinhat Industrial Area, suggested that while the Growth Fund is a positive step, government reforms to grant freehold status to smaller industrial plots could prevent micro and small enterprises from shutting down.

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Key Challenges for MSMEs in Lucknow:

- Lack of capital for expansion

- Difficulty obtaining loans and meeting collateral requirements

- Rising raw material costs

- High cost of machinery and technology upgrades

- Delayed payments affecting cash flow

- Shortage of skilled labour

- Need for global branding amid tariffs and international market volatility

- Inefficient single-window systems for approvals

In addition, the Lucknow Metro’s second phase is set to gain momentum, with the central government providing approximately Rs 1,450 crore for its expansion, further boosting infrastructure and economic growth in the region.


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