CBRE Report: Maharashtra, Tamil Nadu, and Uttar Pradesh Lead in MSME Registrations

A recent report titled ‘MSMEs: Unleashing the Engines of Economic Prosperity’ by real estate firm CBRE South Asia Private Limited identifies Maharashtra, Tamil Nadu, and Uttar Pradesh as the top states in MSME registrations, collectively accounting for 17%, 10%, and 9%, respectively. The Udyam registration portal, operational since July 2020, has witnessed significant adoption, reflecting government initiatives to support MSMEs through various incentives.


The report highlights specific states that have made substantial progress in the MSME sector, with the top ten states constituting around 71% of total MSMEs registered under Udyam. Uttar Pradesh is lauded for its proactive measures, which encompass a 50% interest subsidy for micro units (with a cap at Rs 25 lakh), infrastructure interest subsidies, exemptions from stamp duty, and dedicated support for women entrepreneurs and developers of MSME industrial parks.


The report notes that Maharashtra and Tamil Nadu have implemented policies conducive to MSME growth, including industrial promotion subsidies, interest rate subsidies, electricity duty exemptions, and stamp duty waivers.


As India aims for a $5 trillion economy by 2028, MSMEs are positioned as crucial drivers of economic expansion. Their growth depends on access to credit for operations and expansion and digitization across their operations.


The report references the Foreign Trade Policy enacted in March last year, targeting an overall export value of $2 trillion by 2030. This policy offers incentives such as reduced compliance costs, quicker clearance timelines, and credit insurance, enhancing the competitiveness of export-oriented MSMEs. The report anticipates that this enhanced competitiveness will strengthen India’s manufacturing capabilities and export potential.


Domestically, MSMEs are expected to experience increased demand driven by a growing middle class and rising purchasing power. The report emphasizes that the expected growth in India’s private consumption, estimated to exceed $5 trillion by 2030 from $2 trillion in 2022, will significantly benefit MSMEs.


Additionally, the report highlights the opportunity for enterprises in the construction sector, constituting about 8% of the country’s GDP, to formalize their status by registering as MSMEs. The construction sector is on track to become the world’s third-largest, presenting significant prospects for growth in associated sectors.