New Delhi, May 26 – In a significant move aimed at accelerating India’s economic transformation, NITI Aayog on Monday released a forward-looking report titled ‘Designing a Policy for Medium Enterprises’, charting a strategic roadmap to elevate medium-sized businesses into key drivers of national growth.
Launched by NITI Aayog Vice Chairman Suman Bery, in the presence of Members VK Saraswat and Arvind Virmani, the report provides a detailed policy framework to unlock the untapped potential of medium enterprises and integrate them into India’s vision of Viksit Bharat @2047.
While medium enterprises account for just 0.3% of registered MSMEs, they contribute a staggering 40% of MSME exports, underscoring their vital but under-leveraged role in the economy. The report calls attention to the structural imbalance within the MSME sector, which collectively contributes 29% to India’s GDP, 40% of exports, and employs over 60% of the workforce.
Key Challenges Identified:
The report outlines persistent challenges that inhibit the scalability and competitiveness of medium enterprises:
- Lack of tailored financial products
- Limited adoption of advanced technologies
- Weak R&D support systems
- Inadequate sectoral testing infrastructure
- Skill gaps due to misaligned training programmes
Policy Roadmap Across Six Priority Areas:
To address these gaps, NITI Aayog recommends focused interventions across six pillars:
- Tailored Financial Solutions:
Proposes a turnover-linked working capital scheme, a ₹5 crore enterprise credit card at market rates, and expedited fund disbursal via retail banks under MSME Ministry supervision. - Technology Integration & Industry 4.0:
Plans to upgrade Technology Centres into India SME 4.0 Competence Centres, offering sector-specific and regional Industry 4.0 solutions. - R&D Ecosystem Strengthening:
Calls for a dedicated R&D cell within the MSME Ministry, supported by the Self-Reliant India Fund, to promote cluster-based national projects. - Cluster-Based Testing Infrastructure:
Recommends developing advanced testing and certification hubs to enhance compliance and boost product quality. - Enterprise-Centric Skilling:
Aims to realign skilling initiatives with sectoral needs and integrate medium enterprise modules into Entrepreneurship Development Programmes. - Centralised Digital Access:
Advocates for a dedicated sub-portal on the Udyam platform, with AI-powered tools for scheme discovery, compliance assistance, and seamless navigation of government resources.
Towards a Resilient, Self-Reliant Future
The report stresses the need for inclusive policy design and collaborative governance to propel medium enterprises into the forefront of India’s industrial and economic strategy. With robust institutional support, medium enterprises are poised to become catalysts for innovation, exports, and large-scale job creation.
This comprehensive policy vision aligns with India’s long-term developmental goals and reinforces the strategic role of medium enterprises in realizing the ambition of a developed India by 2047.
