NITI Aayog has unveiled its report, “Designing a Policy for Medium Enterprises,” outlining a comprehensive framework to transform medium enterprises into future economic powerhouses. Released by Vice Chairman Suman Bery, along with Members Dr. V.K. Saraswat and Dr. Arvind Virmani, the report highlights the untapped potential of medium enterprises, which, despite making up only 0.3 percent of MSMEs, contribute 40 percent of MSME exports.
The report emphasizes that medium enterprises are critical to India’s industrial self-reliance and competitiveness, playing a vital role in India’s economic roadmap toward Viksit Bharat @2047. The MSME sector contributes 29 percent to India’s GDP and employs over 60 percent of the workforce, yet medium enterprises remain under-leveraged despite their immense scalability and innovation potential.
Recognizing these gaps, the report proposes a six-pillar policy framework to accelerate the growth of medium enterprises:
- Tailored Financial Solutions: A working capital financing scheme linked to enterprise turnover, 5 crore rupee credit card facility at market rates, and expedited fund disbursal mechanisms through retail banks, overseen by the Ministry of MSME.
- Technology Integration and Industry 4.0: Upgrading existing Technology Centers into India SME 4.0 Competence Centers, fostering the adoption of advanced digital solutions for efficiency and global competitiveness.
- R&D Promotion Mechanism: Establishing a dedicated R&D cell within the Ministry of MSME, leveraging the Self-Reliant India Fund for cluster-based research projects of national significance.
- Cluster-Based Testing Infrastructure: Developing sector-specific testing and certification facilities, ensuring compliance and boosting product quality for international markets.
- Custom Skill Development: Aligning skilling programs with enterprise-specific needs, integrating medium enterprise-focused modules into existing Entrepreneurship and Skill Development Programs (ESDPs).
- Centralized Digital Portal: Creating a dedicated sub-portal within Udyam, featuring AI-based assistance, compliance support, and scheme discovery tools to simplify access to government benefits.
The report underscores that inclusive policy design and collaborative governance are essential for unlocking the true potential of medium enterprises. By enhancing financial access, technology adoption, infrastructure support, and workforce training, India can scale its medium enterprise sector, ensuring it plays a pivotal role in economic expansion, employment generation, and global trade.
The full report is available at .
