NITI Aayog's Bold Blueprint to Empower Medium Enterprises

NITI Aayog, India's premier policy think tank, has disclosed a transformative report aimed at bolstering medium enterprises, positioning them as potential growth engines for the nation's economy. Released on Monday by Vice Chairman Suman Bery, alongside members VK Saraswat and Arvind Virmani, the report, 'Designing a Policy for Medium Enterprises', underscores the sector's strategic importance but its current under-leveraged state.

The report highlights a pronounced structural disparity within the MSME sector, which is responsible for approximately 29% of India's GDP, 40% of exports, and over 60% of workforce employment. A staggering 97% of registered MSMEs are micro-enterprises, 2.7% are small, while a mere 0.3% are medium enterprises. Despite representing a small fraction, medium enterprises contribute nearly 40% of MSME exports, indicating significant untapped potential for scale and innovation.

Positioned as pivotal players in India's journey toward self-reliance under the Viksit Bharat @2047 initiative, medium enterprises face challenges such as limited access to financial products, inadequate adoption of advanced technologies, insufficient research and development support, and a mismatch between workforce training and enterprise needs. The report proposes a policy framework targeting six priority areas: financial solutions, technology integration, R&D mechanisms, cluster-based infrastructure, tailored skill development, and centralized digital resources, fostering an environment where medium enterprises can thrive in innovation, employment, and export sectors.

(With inputs from agencies.)