NITI Aayog has released an important report titled “Designing a Policy for Medium Enterprises,” which offers a clear roadmap to unlock the vast potential of medium enterprises in India. Recognizing these enterprises as the future engines of economic growth, the report highlights their crucial role in shaping a prosperous and self-reliant India by 2047.
The MSME sector is a backbone of the Indian economy, contributing nearly 29% to GDP and employing over 60% of the workforce. Yet, within this vast sector, medium enterprises form only 0.3% of registered MSMEs, while micro and small enterprises make up the overwhelming majority. Despite their small numbers, medium enterprises contribute a significant 40% of MSME exports, pointing to their untapped capacity to drive innovation, scale businesses, and boost global competitiveness.
The report identifies several challenges holding medium enterprises back, such as limited access to tailored financial products, slow adoption of advanced technologies, lack of sufficient research and development support, and inadequate infrastructure for testing and certification. Additionally, there is a mismatch between available skill development programs and the specific needs of these enterprises, which restricts their growth and innovation potential.
To overcome these hurdles, NITI Aayog proposes a comprehensive policy framework focusing on six key areas. Financial support would be enhanced with new schemes like working capital linked to turnover and a ₹5 crore credit card facility to ease fund access. Technology integration efforts will be boosted by upgrading technology centers into India SME 4.0 Competence Centers, promoting Industry 4.0 adoption. The report also calls for establishing dedicated R&D cells and cluster-based testing facilities to improve product quality and innovation.
Recognizing the importance of skilled talent, the report stresses aligning skill development with enterprise-specific needs and integrating specialized modules into entrepreneurship programs. To make navigating schemes and compliance easier, it recommends a centralized digital portal within the Udyam platform, offering AI-based assistance and scheme discovery tools.
This thoughtful approach reflects a genuine understanding of the medium enterprises’ vital role in India’s growth story. With focused support in finance, technology, infrastructure, and skill development, these enterprises can become powerful drivers of employment, exports, and innovation. The report’s vision aligns closely with India’s broader goals of self-reliance and sustainable growth under the Viksit Bharat 2047 initiative.
By investing in medium enterprises today, India is setting the stage for a resilient and inclusive economic future that empowers entrepreneurs and uplifts communities across the country.