India’s MSME growth is geographically concentrated, with a few states like Maharashtra, Tamil Nadu, and Uttar Pradesh accounting for a disproportionate share of enterprises, says a new report.
According to a report by Piramal Finance, despite sustained policy efforts to expand credit access and formalisation, the MSME ecosystem remains marked by significant geographic concentration, uneven credit distribution, and sectoral imbalance. This paper examines inter-state and intra-state concentration of MSMEs, the mismatch between enterprise presence and credit flow, and the implications of sectoral composition for productivity.
