ENA MSME 2026-04-17 16:56:26 <p><span style="font-size:14px"><strong>New Delhi, Apr 17 (KNN)</strong> 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.<br /> <br /> 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.<br /> <br /> They added that administrative discretion and frequent changes in compliance norms continue to create uncertainty and raise operational costs.<br /> <br /> <strong>Compliance, land and credit bottlenecks</strong><br /> 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.<br /> <br /> 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. <br /> <br /> It is estimated to generate 10-15 lakh direct jobs and 5-8 lakh indirect employment, contributing roughly 12-15 percent to the states GDP.<br /> <br /> 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. <br /> <br /> 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.<br /> <br /> Stakeholders have raised concerns over rising land prices driven by e-auctions, which are impacting the viability of small enterprises. </span></p> <p><span style="font-size:14px">While digital platforms like Nivesh Mitra aim to streamline approvals, procedural gaps and technical issues often force a return to offline processes, causing delays. <br /> <br /> 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.<br /> <br /> Amitabh Kharbanda of Toy Association of India underscored that oftentimes schemes made by the government do not align with the ground realities. <br /> <br /> <strong>Reform needs and growth potential</strong><br /> 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.<br /> <br /> Despite these challenges, they noted strong growth potential driven by infrastructure projects, improved connectivity and the regions rise as a logistics hub, adding that addressing implementation gaps will be key to unlocking MSME potential.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 45835 https://knnindia.co.in/news/newsdetails/msme/noida-msmes-flag-structural-bottlenecks-beyond-wage-unrest 2026-04-17 16:56:26 knnindia.co.in