CREATING RESILIENCE
MSMEs
Unleashing the
Engines of Economic
Prosperity
CBRE RESEARCH
JANUARY 2024
Contents
01 02 03
MSMEs In India: The Real Estate
Outlook
A Macro View Paradigm
Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
01
MSMEs In India:
A Macro View
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
MSMEs in India: A Macro View
2.1 Crore 30% 14 Crore 44%
MSMEs registered Contribution of MSMEs No. of people employed Share of MSMEs in
under the Udyam to India’s GDP** in the sector* total exports**
portal*
Top 6 states by MSME registrations through Udyam^
Maharashtra Tamil Nadu Uttar Pradesh Rajasthan Gujarat Karnataka
17% 10% 9% 7% 7% 6%
MSME ambit in real estate
CONSTRUCTION FIRMS CONTRACTORS SUPPLIERS & CONSULTANTS
Builders involved in the end-to-end Managing different stages of construction, Suppliers of cement, steel and
construction of developments especially monitoring work on site, providing specialised other building materials; smaller
in the domains of housing, industrial and services such as masonry, vendor management, real estate consultants providing
warehousing hiring and overseeing labour expertise to stakeholders
Source: *Under Udyam registration portal as of 28 November 2023, definition as per Udyam Scheme; **Press Information Bureau, Role of MSME in the country, August 2023 (data for 2021-22), exports data for 2022-23; ^MSME Dashboard,
Ministry of Micro, Small & Medium Enterprises, GoI, 2023 ; CBRE Research, Q4 2023
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
MSMEs Underscoring India’s Economic Might
India's economic growth is firmly anchored by robust industrial activity,
infrastructure spending, and strong domestic demand. The micro, small,
and medium enterprises (MSMEs) sector has always been a steadfast pillar
of the Indian economy, providing resilience in the face of global economic
shocks. Their development is crucial to achieving national imperatives such as
financial inclusion and generating significant employment opportunities across
urban and rural areas. Furthermore, MSMEs nurture and foster the growth of
new-age entrepreneurs with the potential to establish globally competitive
businesses from India. They also contribute to the industrialization of rural and
backward regions, reducing regional imbalances and ensuring a more equitable
distribution of national income and wealth. Over the last five years, MSMEs in
the country have regained significance, owing to a slew of policy initiatives from
the central government and state governments.
Figure 1.1: MSME definition
MICRO SMALL MEDIUM
Investment: Up to INR 1 crore Investment: Up to INR 10 crore Investment: Up to INR 50 crore
Turnover: Up to INR 5 crore Turnover: Up to INR 50 crore Turnover: Up to INR 250 crore
97%
Share in total
2.7%
Share in total
0.3%
Share in total
MSMEs registered under MSMEs registered under MSMEs registered under
Udyam** Udyam** Udyam**
The real estate sector plays a vital role in the MSME landscape. A real estate business with a turnover lower than INR 250 crore can
register as an MSME entity under the following - (a) real estate activities with own or leased property; (b) real estate activities on a
fee or contract basis.
Source: ** Under Udyam registration portal as of 28 November 2023, definition as per Udyam Scheme; CBRE Research Q4 2023,
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
Figure 1.2: MSMEs In India: At a glance
2.1 crore
NO. OF MSME
30%
CONTRIBUTION OF
44%
SHARE OF MSMES IN
14 crore
NO. OF PEOPLE
REGISTRATIONS UNDER MSMES TO INDIA’S GDP# TOTAL EXPORTS# EMPLOYED IN THE
UDYAM** SECTOR**
Source: CBRE Research Q4 2023
Figure 1.3: Enablers by the Central Government to provide a thrust to the MSME sector in India
Supportive regulatory Thrust on digital
framework Infrastructure Access to credit Skill development
A supportive framework Enabling digital infrastructure Easing credit flow into the sector Enlarging the entrepreneurial
through the MSME through the Unified Payment through credit guarantee scheme, base through capital grants
Development Act and Udyam Interface (UPI) and Open Credit interest subvention programmes, to training and institutes and
Registration portal, apart from Enablement Network (OCEN) for etc. Private-sector participation Skill India.
initiatives such as Start-up streamlining digital transactions through neo banks and fintech
India, labour reforms, and at low data costs. firms is also on the rise.
reduced corporate tax.
Note: #Press Information Bureau, Role of MSME in the country, August 2023 (data for 2021-22), exports data for 2022-23, ** Under Udyam registration portal as of 28 November 2023
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
MSMEs as a linchpin for India’s Economic Prowess
As India strides towards the aim of becoming a USD 5 trillion economy by end of the decade#, Figure 1.4: MSMEs’ contribution to a country’s GDP
MSMEs are poised to play a catalytic role in economic growth. The expansion of MSMEs would
Developing Economies
hinge upon the accessibility of credit for both operational sustenance and expansionary activity
and digitization across operations. Country Contribution to GDP
Brazil ~30%^
Developed economies tend to exhibit a higher proportion of MSMEs contributing to their
national GDP, as illustrated. To enhance the productivity of Indian MSMEs, it's crucial to China ~60%^
augment their cost competitiveness and expand their reach across domestic and global Russia ~22%^
markets.
South Africa ~40^
India’s Foreign Trade Policy, passed in March 2023, aims to strengthen India’s overall exports to
USD 2 trillion by 2030##. Under the policy, incentives such as lower compliance costs, shorter Developed Economies
timelines for clearances, and credit insurance would enhance the competitiveness of export- Country Contribution to GDP
oriented MSMEs. This increased competitiveness of the Indian MSME sector are likely to
support the country’s manufacturing capability and export potential. Germany ~48%^^^
Japan ~50%**
On the domestic front too, MSMEs are expected to face surging demand, led by a growing
middle class and rising purchasing power. MSMEs would benefit from India’s private Singapore ~44%*
consumption growth, which is likely to more than double from USD 2 trillion in 2022 to USD 5 United States of America ~44^^
trillion by 2030###.
#
Niti Aayog, Strategy for New India @75, November 2018, ##Press Information Bureau, October 2022, ###Morgan Stanley, Why This Is India’s Decade, October 2022 ^.OECD, Financing SMEs and Entrepreneurs 2022: An OECD Scoreboard, ^^US Chamber
of Commerce, April 2023, ^^^ OECD SME and Entrepreneurship Outlook 2021, *Singapore Department of Statistics, Feb 2023, **OECD, Japan Policy Brief
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
Central Schemes Supporting the MSME Ecosystem
Since 2020, the government has introduced a range of economic incentives to support the revival of MSMEs in the country. In the Union Budget 2023-24, the central government
announced an infusion INR 9,000 crore into the Credit Guarantee Fund Trust for Micro and Small Enterprises. Also, the Union Cabinet approved an additional allocation of INR 2,500
crore for the continuation of Interest Equalisation Scheme till June 30, 2024. A few key central initiatives are outlined in Figure 1.5.
Figure 1.5: Select central government initiatives for MSMEs
Jun-2020 Jul-2020 Apr-2022 Jun-2022
Credit Guarantee
Scheme for Zero Defect Zero Raising and
Subordinate Debt Udyam Effect (ZED) Accelerating MSME
(CGSSD) Registration Certification Scheme Performance (RAMP)
• Under this scheme, funds are infused • The registration aims to enhance the • The scheme aims at enabling MSMEs • This scheme aims to strengthen India’s
to revive operational MSMEs facing ease of doing business for MSMEs. towards manufacturing quality MSME sector by enhancing centre-
financial strain (SMA-2 / NPA)*. This is a mandatory certification products by inculcating Zero Defect & state collaboration in MSME promotion
from the Ministry of Micro, Small and Zero Effect practices. and development.
• The government of India allocated Medium Enterprises that MSMEs
INR 4,000 crore to provide requisite receive upon signing up on the official • ZED certification would be attained on • RAMP is a World Bank-assisted central
financing to MSME units where an portal. three levels (bronze, silver, and gold) government programme announced in
outright loan is difficult. after taking the ZED pledge. the Union Budget of 2022-23 with an
• To be eligible for the Udyam Aadhaar, outlay of around INR 6,000 crore.
• Promoter(s) given credit equal to 15% of the enterprises should fit into the • 80-60-50% subsidy on cost of ZED
their stake (equity plus debt) or INR 75 classification as provided by the certification is provided for Micro, • INR 3,750 crore would be loaned by
lakh, whichever is lower. ministry (given in figure 1.1). Small & Medium Enterprises. the World Bank and the remaining INR
2,250 crore would be contributed by
• The central government implemented a • The government of India launched • Financial assistance of up to 75% of the government of India.
revamped scheme from April 2023. the Udyam Assist Platform (UAP) in the total cost of testing / certification,
January 2023 to bring the Informal with the maximum subsidy of INR • It is a five-year plan which targets
• In the Union Budget 2023-24, INR 2 lakh 50,000, is provided. improvement in the performance of 5.5
crore additional credit for Micro and Micro Enterprises (IMEs) under the
formal ambit for availing of the benefit lakh MSMEs in the country.
Small Enterprises was facilitated under
CGTMSE, and the cost of credit was under Priority Sector Lending (PSL).
reduced by 1%.
Source: National Investment Promotion and Facilitation Agency, 2023; Ministry of Micro, Small and Medium Enterprises, Government of India (GoI), 2020, 2022; Union Budget 2023-24, GoI, 2023; CBRE India Research, Q4 2023
Note: *SMA-2 - Special Mention Account whose principal or interest payment or any other amount wholly or partly overdue for more than 60 days and upto 90 days; NPA - Non-Performing Asset
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
Uttar Pradesh Amongst the Top Three States in terms of MSME Registrations
The government’s Udyam portal, operational since July 2020, has seen considerable offtake. As the government endeavours to support MSMEs through various incentives, a few
states have witnessed greater sectoral thrust than others in the recent past.
Figure 1.6: Select policy initiatives Figure 1.7: Top 10 states by MSME registrations through Udyam
• 50% interest subsidy for micro units capped at INR 25 lakh 4,000,000
• Approved projects with 10 acres or more eligible for annual infrastructure 3,500,000
Uttar Pradesh interest subsidy of up to 50%, capped at INR 2 crore annually 3,000,000
• 100% stamp duty exemption in select regions; also, women entrepreneurs and 2,500,000
MSME industrial park developers are eligible for the same^ 2,000,000
1,500,000
1,000,000
• Industrial Promotion subsidy for new units depending on taluk categorisation 500,000
Maharashtra • Interest subsidy to new units capped at 5% 0
Maharashtra
Tamil Nadu
Uttar Pradesh
Rajasthan
Gujarat
Karnataka
Madhya Pradesh
Bihar
West Bengal
Punjab
• Exemption from electricity duty
• Stamp duty waiver on new or expansionary units#
Total registrations
• Capital subsidy of 25% on eligible plant and machinery, subject to a capped
amount of INR 1.5 crore for micro units
• Interest subsidy of 5% for small and micro manufacturing units capped as per Figure 1.8: Key Facts-Top 10 states by MSME registrations through Udyam
Tamil Nadu
term loans
• Power subsidy of 20% for 36 months from the date of commencement of The top ten states Maharashtra accounted Tamil Nadu and Uttar
production or from the date of obtaining power connection, whichever is later## account for about 71% for the highest number Pradesh followed
of the total number of enterprises under Maharashtra in MSME
of MSMEs registered Udyam registrations at registrations
Note: For detailed policy initiatives, please refer to respective state policies
under Udyam 17%
Source: CBRE Research, Q4 2023., MSME Dashborad, Ministry of Micro, Small and Medium Enterprises,
#
Mahasrashtra Industrial Policy, 2019, ##Tamil Nadu MSME Department, ^UP MSME Policy 2022
registrations in the
country.
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
City-wise Distribution of Udyam Registrations
Indicates % share of the top 10 states contributing
% share of states & UTs in pan-India to the pan-India Udyam registrations
Udyam registrations (as of 12-Dec-23) Cities with > 100,000 registrations
0% 20% Cities with 50,000 - 100,000 registrations
Cities with < 50,000 registrations
4%
Punjab
Ludhiana 9%
Meerut
Uttar Pradesh
Delhi-NCR Ghaziabad
4%
Faridabad
7%
Rajasthan
Jaipur
Agra
Lucknow Guwahati Bihar
Gwalior Patna
5%
Kanpur
Jodhpur Kota
Varanasi
Madhya Pradesh
7%
Dhanbad
Ahmedabad Bhopal Ranchi
Gujarat Vadodara
Indore Kolkata 4%
West Bengal
Surat Raipur
Nashik Nagour Bhubaneshwar
17% Mumbai
Maharashtra Pune
Warangal Visakhapatnam
Hyderabad Vijayawada
Goa
Hubli
6%
Karnataka Mangalore Chennai
Bangalore
Mysore Hosur
Coimbatore
10%
Tamil Nadu
Tiruchirappalli
Kochi
Madurai
Thiruvananthapuram
Source: MSME Dashboard, Ministry of Micro, Small & Medium Enterprises, GoI, 2023; CBRE Research, Q4 2023.
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
What Hinders the True Power of MSMEs?
MSMEs in India grapple with lack of formalisation, impairing their long-term potential for growth. One of the key obstacles faced by small enterprises is the lack of foresight and a
roadmap to the future. Resource planning and utilisation, business optimization, managing cash flows and financials are often hindrances that they face internally. However, these
operational challenges can be overcome by addressing the broader issues that MSMEs face.
On the wider range, aspects such as access to financing, and limited availability of skilled talent are seen as considerable bottlenecks in the growth of MSMEs.
Key challenges faced by MSMEs
SUBDUED RESTRICTED
TECHNOLOGY INFRASTRUCTURE AVAILABILITY OF LIMITED ACCESS
CREDIT GAP INTEGRATION BOTTLENECKS SKILLED LABOUR TO MARKET
Only 14% MSMEs in India have About half of the MSMEs in Inadequate infrastructure, Perceptions such as Micro and smaller enterprises
access to credit, compared to India are not integrated with including transportation, MSMEs being unorganised struggle with accessing
more than 30% in developed e-commerce platforms for energy, and digital or antiquated often make markets in far-flung locations,
nations.* their products and services.** connectivity continue to stunt attracting skilled talent as well as international
the potential of MSMEs. challenging. markets.
Source: CBRE Research Q4 2023, * Avendus Capital, MSME Lending, April 2023 ** ICRIER, Leveraging E-commerce for the Growth of MSMEs, September 2023
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
02
The Real Estate
Paradigm
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
Construction and Allied Sectors to See Benefits from
MSME Registration
The construction sector, accounting for about 8% of India’s GDP, is slated to become the third largest globally
over the next two years#*. Several firms in the construction and allied sectors can be considered as largely
unorganised; however, this also creates an opportunity for them to register as MSMEs.
This could be immensely beneficial for building construction firms, contractors across the construction spectrum,
and raw material suppliers. These firms are already entrenched in the sector by supplying their goods and
services to large-scale companies involved in construction development across sectors. Firms aiding large
construction companies engaged in developing public infrastructure are also likely to witness increased demand,
aided by the government’s thrust on infrastructure development. In the Union Budget 2023-24, the government
raised its infrastructure budget by 33%, recognising infrastructure as a key contributor to sustainable growth**.
To sustain the volume of growth coming their way, these firms would need to enhance the quality and speed
of their services. However, smaller operators in the construction and allied spaces often face challenges in the
form of lack of qualified talent, concerns around safety, delayed / unpaid invoices, and their inability to invest in
employees’ training among other factors. Registering as an MSME under the Udyam scheme could help these
firms avail the benefits of credit guarantee schemes, public procurement policies, and protection against delayed
payments. Additionally, this could aid these firms becoming eligible for priority sector lending, thus enabling
swifter growth.
Besides, swifter registrations could also translate to firms from the construction and allied sectors securing a
greater share within the MSME space, while allaying some concerns that the sector faces on a regular basis.
Figure 2.1: MSME ambit in construction and allied sector
Construction firms Contractors Suppliers & Consultants
Builders involved in the Managing different stages of Suppliers of cement, steel and
end-to-end construction of construction, monitoring work other building materials; smaller
developments especially in the on site, providing specialised real estate consultants providing
domains of housing, industrial services such as masonry, expertise to stakeholders
and warehousing vendor management, hiring and
overseeing labour
Source: #MOSPI, May 2023 *Union Ministry of Commerce and Industry, April 2023, ** Union Budget 2023-24
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
Smaller Construction Firms Facing Headwinds
Smaller development firms are pivotal to the growth of Tier II, III, IV cities in the country. They fuel local economies by strengthening a city’s real estate fabric and its overall infrastructure.
Smaller developers cater to the diverse needs of buyers, including budget and mid-segment homebuyers in the residential segment. However, despite their vital contributions, smaller
developers often face concerns ranging from the lack of access to credit to policy disruptions that impact their operational dynamics and restrict them from reaching their true potential.
Figure 2.2: Key Challenges faced by smaller real estate development firms
High approval Complying
Lack of industry- and compliance with policy Limited access to Higher cost of
specific reforms costs upgradation organised credit financing
Being granted an ‘industry’ Smaller developers often face The real estate sector has Public sector banks and housing For construction financing,
status has been a long- cost overruns emanating from undergone a policy transition, finance companies have become smaller developers often
standing demand for the real approval delays and adherence ushering in transparency cautious about lending to resort to sources of funding
estate sector. While affordable to compliances related to the and accountability over the smaller developers, especially that involve a higher cost. The
housing and the logistics real estate regulatory authority last seven years. While this post the non-banking financial applicable interest rates from
sector have been granted the (RERA) rules and other policy has brought in a degree of companies' crisis in 2018. Banks alternate sources of financing
‘infrastructure status’ by the guidelines. Higher costs impact formalisation in the sector, and financial institutions have impact their margins, thereby
central government, an ‘industry’ developers’ margins and the transition has forced been limiting their exposure restricting their potential to
status would enable state- completion timelines. several smaller developers to towards smaller builders due scale up their portfolios.
specific reforms and policies restructure and overhaul their to their perceived higher risk
for the real estate sector. Some operations within the new profile. This restricts the ability
of these benefits could include framework. of builders to invest in projects
preferential land allotments, and expand their operations.
easier and cheaper access to
credit, faster clearances, tariff
and duty exemptions among
other benefits, translating into
a more conducive operating
environment.
Source: CBRE Research Q4 2023
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
Benefits of Registering as MSMEs for Real Estate Players
Zero-collateral Reduced interest Concession on
bank loans rates electricity consumption
With MSME registration, banks and Registered developers can benefit Udyam-registered real estate MSMEs would
financial institutions would offer credit from interest subvention or reduced benefit through concession in electricity
to developers without requiring to interest rates facility; up to 1.5% lower bills, attained by providing an application
pledge assets as security. This would interest rates on regular business to the state electricity board along with
enable developers to access credit at loans. Udyam Registration Certificate.
lower risk.
Protection
against delayed Free ISO Subsidy on patent
payments Certification registration
MSME Samadhaan portal enables The benefit of free ISO certification, 50% subsidy on the total cost of patent
registered MSMEs including real which provides the Udyam-registered registration, which makes it more affordable
estate firms to directly register their MSMEs with financial assistance for for registered MSMEs to protect their
cases about delayed payments obtaining the certification. inventions and innovations.
against the buyer of goods / services
before the Micro and Small Enterprise
Facilitation Council (MSEFC).
Source: Ministry of Micro, Small and Medium Enterprises, GoI, 2023; CBRE Research, Q4 2023
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
Process of Registration for MSMEs
Registering MSMEs under the Udyam scheme would offer several benefits to real estate developers that would help them grow and become more competitive. The process of registration
is highlighted in the figure below.
1 3 5 7 9
For online registration, File an online form On completion of Provisional registration Post the commencement
visit the Udyam using Udyog Aadhaar registration, an e-certificate assists in obtaining of business, the MSMEs would
registration portal* Registration containing the Permanent bank loans and in be eligible to apply
Identity Number (PIN) applying NOC from the for Permanent
would be regulatory License
2 4 generated 6 authorities 8
Aadhaar number would For the Prior to commencement The MSME should submit
be mandatory for verification process, one of business, provisional Income Tax Return / GST
registration should use the registration would be issued Return on Udyam Aadhaar
e-Aadhaar by the Ministry of portal
OTP MSMEs. This would
be valid for
5 years
Source: Ministry of Micro, Small and Medium Enterprises, GoI, 2023; CBRE Research, Q4 2023
Basic documents required
Aadhaar | PAN | Bank Account Number and IFSC Code | NIC Code | Data on number of employees and expected date of commencement of business
Address proof of business | Copy of industrial license | Bills and receipts of purchase of machinery
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
03
Outlook
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
Unlocking MSMEs’ Potential Through Financing
The country's rapid strides into digitization hold immense promise for democratizing the financing avenues for MSMEs that form the backbone of India's economy and drive
employment, innovation, and inclusive growth. However, access to formal modes of financing has long been a major challenge for these enterprises. In the real estate sector, while
established developers with a proven track record continue to seek financing from avenues such as commercial banks, private-equity firms and pension funds; smaller developers
often face challenges in attaining project-level funding (especially from public-sector banks). Several challenges such as lack of documentation, inability to offer collaterals, and a
perceived higher risk profile hinder their attempts to secure long-term funding at lower interest rates. Overall, as the financial landscape evolves, the following are some practices seen
in the Indian market.
Figure 3.1: Changing landscape of MSME financing Figure 3.2: Evolving financing practices
The convergence of Digital lending platforms are Partnerships between
digitization, traditional leveraging technology to automate traditional banks and
Innovative fintech + banking systems, and open tasks such as credit worthiness fintech companies are
Fintech traditional protocol infrastructure assessment, risk evaluation, and likely to accelerate the
financial institutions
such as the Open Credit documentation, streamlining the growth of digital lending
MSMEs
Enablement Network financing process for MSMEs. This in India, combining the
(OCEN), are paving the data-driven approach enables expertise of banks with
way for a more inclusive fintech firms to provide tailored the agility and data-driven
Non-banking Open Credit
financial Enablement and accessible financing financing solutions to MSMEs that capabilities of fintech
companies Network ecosystem for India's may not have access to traditional firms.
MSMEs. banking channels.
Evolving funding landscape
For real estate MSMEs, Funding options for real estate Funds such as the Special
Neo banking maintaining a proven developers are evolving with entities Window for Affordable
Commercial
banks facilities track record of executing such as non-banking financial and Mid-Income Housing
REAL ESTATE
projects in a timely manner, companies, alternate investment (SWAMIH) Investment
formal documentation funds and financial services firms Fund can also provide last-
processes and efficient actively deploying credit for mile funding for stalled
cash flow management construction finance. and stressed residential
would infuse confidence projects.
Traditional modes of financing Leveraging data-driven approach to amongst lenders.
involving lengthy documentation narrow credit gap and provide tailored
and long loan processing time financing solutions
Source; CBRE Research, Q4 2023
Source; *MSME Ministry, Rajya Sabha, July 2023; CBRE Research, Q4 2023
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Creating resilience MSMEs: Unleashing the Engines of Economic Prosperity
Empowering MSMEs For a Thriving Future
Over the next few years, lending to MSMEs in the real estate sector would broaden with private firms increasing their exposure to the
Tech-enabled sector. Financial firms using data-driven solutions for loans such as predictive analysis and AI-powered credit scoring would modernise
lending the lending landscape. Well-run construction companies would be benefitted by the enhanced financing, helping them scale up their
projects and enable swifter completion of projects.
Providing industry-specific technology and knowledge infrastructure, apart from the development of incubation hubs, would help provide
a strong foundation for smaller enterprises. From a physical infrastructure standpoint, project-specific incentives such as rebate on
Upgrading MSME land cost, power consumption for specific project types such as affordable and mid segment housing, would provide strong incentives
infrastructure for developers. The government’s INR 75,000 crore proposal for 100 critical transport infrastructure projects for first and last-mile
connectivity would help MSMEs in the manufacturing space.*
Data costs in India are third-lowest globally, at about USD 0.04 for 1 GB.** This has accelerated digital adoption amongst smaller
Digital developers, boosting their sales through e-commerce and social media. In the next phase of growth, using enterprise resource planning,
economy cloud services, analytics, etc. is likely to boost their reach and efficiencies.
Incentives for setting up skill development centres, business mentoring services for experienced employees for aspects such as
Developing skills complying with the RERA norms and exchange of best practices in the real estate sector are some of the recommendations that would
and talent enhance skilled talent and promote professionalism amongst smaller developers.
Overall, real estate MSMEs would reap beneflts from a host of policy initiatives announced by the central and state governments.
The consideration of the real estate sector as a cohesive industry would further increase their competitiveness, fuelling investments in
productive assets, job creation, and propelling economic growth.
Source: * Union Budget 2023-24, February 2023, **, Cable UK, September 2023
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