Uttar Pradesh clinches top spot with 9% share in the national MSME landscape

UP leads MSMEs: Uttar Pradesh (UP) has firmly secured its position among the top contributors to India's Micro, Small, and Medium Enterprises (MSME) sector, boasting a substantial 9 per cent share, according to CBRE data.

The collective impact of Maharashtra, Tamil Nadu, and Uttar Pradesh is significant, jointly constituting nearly 40 per cent of the total registered MSMEs in India. This regional concentration not only highlights the widespread distribution of MSMEs but also emphasises the crucial role these states play in driving the vibrancy and economic impact of the sector.

Policy boost for entrepreneurs

Uttar Pradesh's proactive approach includes policy measures such as a 50 per cent interest subsidy for micro units capped at Rs 25 lakh, an annual infrastructure interest subsidy of up to 50 per cent for approved projects with 10 acres or more (capped at Rs 2 crore), and a 100 per cent stamp duty exemption in select regions for women entrepreneurs and MSME industrial park developers.

The Udyam scheme, a government initiative designed to promote MSME growth, has played a pivotal role in UP's success. Cities like Agra, Kanpur, Varanasi, Lucknow, Meerut, and Ghaziabad have emerged as prominent MSME clusters, actively participating in the Udyam scheme.

Construction boom ahead

In addition to its MSME prowess, the report also highlights the strategic opportunity for MSMEs in the construction sector, contributing approximately 8 per cent to the GDP. With the construction sector set to become the third largest globally in the next three years, unorganised firms in this domain stand to gain significantly by registering under the MSME ambit.

Anshuman Magazine, Chairperson, CBRE, emphasised the shift in MSME financing driven by technology and collaborative partnerships. "In Uttar Pradesh, MSMEs are driving growth and dismantling barriers through technology and collaboration, shaping a future of inclusive economic development," he said.

Boman Irani, National President, CREDAI, commended Uttar Pradesh's dominance in the MSME sector, attributing it to the state's entrepreneurial landscape and effective government initiatives. He stressed the importance of collaborative efforts between the government, industry, and financial institutions for sustained growth in both MSMEs and real estate.