NITI Aayog Releases a Report Titled “Designing a Policy for Medium Enterprises”

• 30 May 2025
• 368 Views

NITI Aayog has released a new study titled "Designing a Policy for Medium Enterprises" and laid out a clear and practical strategy to help medium-sized businesses become a key force in India’s future economic growth. The report was launched by Vice Chairman Suman Bery, with members Dr. V.K. Saraswat and Dr. Arvind Virmani also in attendance.

The study takes a close look at India’s MSME (Micro, Small, and Medium Enterprises) sector. Although this sector employs over 60% of the workforce, contributes nearly 29% to India’s GDP, and makes up 40% of exports, there’s a noticeable imbalance in its structure. 97% of all registered MSMEs are micro-enterprises while only 0.3% are classified as medium-sized ones.

That small slice of medium enterprises, however, tells a big story. Despite being just 0.3% of the total, they are responsible for nearly 40% of MSME exports. This points to a massive untapped potential. Medium enterprises can scale, innovate and compete globally, but sadly they’re often held back by several challenges.

The report identifies some of the biggest hurdles these businesses face i.e., limited access to suitable finance, slow tech adoption, poor testing infrastructure, weak R&D support and training programs that don’t match what businesses actually need. All these factors make it harder for medium enterprises to grow.

To address these issues, the report proposes a six-part policy framework:

• Better Financial Access
  • A working capital scheme tied to business turnover
  • A ₹5 crore credit card facility at regular market rates
  • Faster loan disbursals through regular banks, under MSME Ministry oversight
• Technology and Industry 4.0 Adoption
  • Revamp of existing tech centers to meet sector- and region-specific needs
  • New Industry 4.0 Competence Centers to help firms modernize
• Boosting R&D
  • A dedicated R&D unit in the MSME Ministry
  • Use of the Self-Reliant India Fund to support important cluster-based innovation projects
• Testing and Certification Infrastructure
  • Sector-specific labs to help businesses meet quality standards and reduce compliance costs
• Skill Development That Actually Fits
  • Enterprise-specific training content added to existing government programs
  • Courses tailored by industry and region to meet real-world needs
• A One-Stop Digital Portal
  • A dedicated section within the Udyam platform to help businesses discover schemes, get compliance help, and access AI-driven support tools

The big message here is that Medium-sized businesses in India have long been overlooked, but they hold enormous promise. With the help of the right support (from finance to tech, training to R&D), they can create jobs, propel exports and power the nation’s push toward a more self reliant and competitive economy.

The report places emphasis on the fact that unleashing this potential requires more than just policy. It calls for coordinated efforts across government and industry. If that happens, medium enterprises could become central to India’s vision of Viksit Bharat @2047.

Source: PIB