Other Backward Classes (OBC) own approximately a third of the country’s micro, small, and medium companies (MSME). The number of MSMEs held by OBCs was 23.31 lakh units as of March 31, 2022, out of a total of roughly 80.16 lakh units in the country.
According to a review of data provided exclusively to The Hindu by the Office of the MSME Development Commissioner, nearly 41% of OBC-owned firms are located in three states: Tamil Nadu (14.5%), Maharashtra (14.4%), and Rajasthan (12.4%). The information was generated based on the units that registered with the government through the Udyam portal.
OBC at 30%
The General Category, with 61.8 percent of the MSME units, accounts for the biggest percentage of the MSME units, according to the socioeconomic category-wise distribution. In terms of absolute numbers, this group contains 49.56 lakh units. The Scheduled Castes possess 6.8% of the units (about 5.43 lakh), while the Scheduled Tribes own 2.1 percent of the units (approximately 1.68 lakh). Approximately 18,000 units are classified as “Unidentified.”
A micro-enterprise is defined as one where the investment in plant and machinery or equipment does not exceed 1 crore and turnover does not exceed 5 crores, a small enterprise is defined as one where the investment in plant and machinery or equipment does not exceed 10 crores and turnover does not exceed 50 crores, and a medium enterprise is defined as one where the investment in plant and machinery or equipment does not exceed 10 crores and turnover does not exceed 50 crores, according to a June 2020 notification from the Union Ministry of MSME.
Tamil Nadu has the most OBC-owned businesses, with 3,37,016, of which 3,23,441 are micro-enterprises, 12,778 are small businesses, and 797 are medium businesses.
With 3,35,920 businesses, Maharashtra is second only to the southern state, with 3,31,770 microbusinesses, 3,944 small businesses, and 206 medium businesses. Rajasthan, in the northwest, comes in third with 2,89,857 units owned by OBCs. It has roughly 2.86 lakh micro-units, including 3,585 small businesses and 150 medium-sized businesses.
The northern states of Uttar Pradesh (about 2.38 lakh units), Bihar (1.71 lakhs), and Madhya Pradesh (1.56 lakhs) take the fourth, fifth, and sixth places, respectively.
The OBCs account for 39.4 percent of the total number of 8.56 lakh units in Tamil Nadu, which is nearly ten percentage points higher than the national average of 29 percent. However, in Maharashtra, it is only about 20.6 percent, whereas in Rajasthan, it is just under 46 percent.