NITI Aayog has released a seminal report titled “Designing a Policy for Medium Enterprises”, presenting a focused roadmap to harness the untapped potential of India’s medium-sized enterprises. Unveiled by Shri Suman Bery, Vice Chairman of NITI Aayog, alongside Members Dr. V.K. Saraswat and Dr. Arvind Virmani, the report emphasises the pivotal role of medium enterprises in propelling India towards the vision of Viksit Bharat @2047.
Medium enterprises, although representing just 0.3% of the Micro, Small and Medium Enterprises (MSME) sector, account for a remarkable 40% of MSME exports. This disproportionate contribution underscores their latent capacity to drive industrial innovation, exports, and large-scale employment. In contrast, micro and small enterprises constitute 97% and 2.7% of the sector, respectively.
The MSME sector as a whole is a cornerstone of India’s economic fabric, contributing approximately 29% to the national GDP and employing over 60% of the workforce. However, the report identifies a structural imbalance that stifles medium enterprises’ growth, limiting their ability to scale, adopt advanced technologies, and contribute to global supply chains.
To remedy these challenges, NITI Aayog’s report outlines a policy framework centred on six key strategic pillars:
- Tailored Financial Solutions: Introduction of innovative financial products, including a turnover-linked working capital scheme, a ₹5 crore enterprise credit card at market rates, and faster disbursal systems through retail banks under MSME Ministry oversight.
- Technology Integration & Industry 4.0: Transformation of existing technology centres into sector-specific India SME 4.0 Competence Centres to accelerate digital and automation adoption across medium enterprises.
- R&D Promotion: Formation of a dedicated R&D cell within the Ministry of MSME to facilitate cluster-based, high-impact projects, supported by the Self-Reliant India Fund.
- Cluster-Based Testing Infrastructure: Establishment of localised, sector-specific testing and certification facilities to streamline product compliance and bolster export readiness.
- Custom Skill Development: Alignment of training programs with enterprise-specific requirements, integrating tailored modules into existing Entrepreneurship and Skill Development Programmes (ESDP).
- Centralised Digital Portal: Launch of a specialised sub-portal within the Udyam platform to provide enterprises with AI-enabled scheme discovery, compliance support, and resource navigation tools.
The report emphasises that fostering the growth of medium enterprises demands inclusive, agile policy design and collaborative execution. With the right ecosystem of finance, innovation, skilling, and digital enablement, medium enterprises can evolve into future large enterprises, catalysing India’s transition into a globally competitive, innovation-led economy.
NITI Aayog envisions medium enterprises as key instruments in achieving the national development goals of Viksit Bharat @2047. By enabling them to overcome systemic barriers, India can unlock new frontiers of growth, employment, and global industrial leadership.