Construction Sector Vital in Boosting MSME Success in UP: Study

New Delhi, Jan 9 (KNN) The construction sector has played a key role in Uttar Pradesh's recent success in the Micro, Small and Medium Enterprises (MSMEs) sector. Several firms in the construction and allied sectors can be considered as largely unorganized creating an opportunity for them to register as MSMEs.

A recent study conducted by Coldwell Banker Richard Ellis (CBRE) Group and the Confederation of Real Estate Developers' Associations of India (CREDAI) highlighted that Uttar Pradesh (UP) holds a 9 per cent share in the national MSME landscape.

The study also explained the ambit of MSMEs in the real estate sector as construction firms, contractors and suppliers of cement and steel played a vital role in the state’s success.

This can also be attributed to the policy measures taken by the UP government such as a 50 per cent interest subsidy for micro-units, an annual infrastructure interest subsidy of up to 50 per cent for approved projects with 10 acres or more, 100 per cent stamp duty exemption in specific regions and various other measures to support MSMEs.

Maharashtra, Tamil Nadu, and Uttar Pradesh together account for approximately 40 per cent of the total registered MSMEs in India, as per the study.

The MSME ecosystem in Uttar Pradesh has witnessed the formation of significant clusters in cities like Agra, Kanpur, Varanasi, Lucknow, Meerut, and Ghaziabad, actively engaging with the Udyam scheme. To provide additional encouragement to MSMEs, the State government has introduced a variety of schemes.

(KNN Bureau)