New Delhi, Apr 17 (KNN) Even as recent labour unrest triggered wage-related concerns in the Noida-Greater Noida industrial belt, industry stakeholders have highlighted deeper structural challenges affecting micro, small and medium enterprises (MSMEs) in the region.
Stakeholders cited high compliance burdens, legacy bureaucratic systems and limited credit access as key constraints despite a supportive policy environment for MSMEs, The Economic Times reported.
They added that administrative discretion and frequent changes in compliance norms continue to create uncertainty and raise operational costs.
Compliance, land and credit bottlenecks
According to Rakesh Bansal, Director, MM Polyvinyls, approvals from departments such as fire safety and local authorities often consume a significant portion of industrial land, particularly for small units, limiting space available for production.
The Noida-Greater Noida industrial cluster in Gautam Buddha Nagar houses around 15,000-16,000 MSME units across sectors such as electronics, auto components, engineering goods, textiles, leather and plastics.
It is estimated to generate 10-15 lakh direct jobs and 5-8 lakh indirect employment, contributing roughly 12-15 percent to the state’s GDP.
Jitendra Singh Rana, Chairman B2B, Indian Industries Association (IIA), Greater Noida chapter, also flagged the leasehold nature of industrial land in Uttar Pradesh as a structural bottleneck.
Industrial plots are typically allotted on long-term leases, requiring prior approvals for operational changes, ownership restructuring or subleasing, often leading to delays and additional costs.
Stakeholders have raised concerns over rising land prices driven by e-auctions, which are impacting the viability of small enterprises.
While digital platforms like ‘Nivesh Mitra’ aim to streamline approvals, procedural gaps and technical issues often force a return to offline processes, causing delays.
Access to finance also remains a challenge, as banks typically require a three-year track record, making it difficult for new MSMEs to secure credit.
Amitabh Kharbanda of Toy Association of India underscored that oftentimes schemes made by the government do not align with the ground realities.
Reform needs and growth potential
Industry representatives have called for reforms such as simpler compliance systems, better credit access, rationalised land policies and clearer lease frameworks, along with wider adoption of plug-and-play infrastructure to lower costs and speed up operations.
Despite these challenges, they noted strong growth potential driven by infrastructure projects, improved connectivity and the region’s rise as a logistics hub, adding that addressing implementation gaps will be key to unlocking MSME potential.
(KNN Bureau)
