Maharashtra, Tamil Nadu, and Uttar Pradesh collectively contribute nearly 40 per cent of all registered micro, small, and medium enterprises (MSMEs) in India, per a CBRE-CREDAI report. As of December 2023, there are over 3 crore MSMEs registered in the country, according to government data.
Uttar Pradesh has secured a significant position among the top three States, holding a 9 per cent share in the national MSME landscape. This is due to policy initiatives like 50 per cent interest subsidy for micro units (capped at ₹25 lakh), an annual infrastructure interest subsidy of up to 50 per cent for approved projects with 10 acres or more (capped at ₹2 crore), 100 per cent stamp duty exemption in select regions, and other supportive measures.
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The MSME ecosystem in Uttar Pradesh has seen the emergence of key clusters in cities such as Agra, Kanpur, Varanasi, Lucknow, Meerut, and Ghaziabad, actively participating in the Udyam scheme. To further incentivise MSMEs, the State government has implemented a range of schemes.
Anshuman Magazine, Chairman, India, Southeast Asia, Middle East and Africa, CBRE, highlighted the crucial role of the MSME sector in shaping India’s economic landscape and emphasised Uttar Pradesh’s role in driving growth and reducing regional imbalances.
The report also delves into the transformative shifts in India’s MSME financing scene, driven by technological advancements and collaborative partnerships. Furthermore, it underscores the strategic opportunity for Indian MSMEs in the construction sector, contributing approximately 8 per cent to the GDP.
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With the construction sector poised to become the third-largest globally in the next three years, unorganised firms in this domain stand to benefit significantly by registering under the MSME ambit. The integration of digitisation, traditional banking systems, and open protocols has fostered a more inclusive financing ecosystem, breaking down barriers for a broader segment of MSMEs.
Boman Irani, CMD, Rustomjee Group, National President, CREDAI, emphasised the need for streamlined regulations, skill development, and technology adoption in the real estate sector. He underscored that collaborative efforts between the government, industry, and financial institutions are crucial to ensure sustained growth in both MSMEs and real estate, paving the way for a robust, inclusive, and resilient economic future for India.