NITI Aayog has released a detailed policy framework aimed at strengthening medium enterprises—an often-overlooked segment of India’s MSME landscape with high potential for scale, innovation, and export growth. Titled “Designing a Policy for Medium Enterprises”, the report positions this 0.3% segment as a future pillar of India’s industrial transformation.
Medium enterprises: Small in number, large in impact
While medium enterprises make up just 0.3% of registered MSMEs, they account for nearly 40% of MSME exports, highlighting a critical opportunity to boost India’s manufacturing and innovation capabilities. The report points out that the MSME sector as a whole contributes 29% to the country’s GDP and employs over 60% of its workforce—but remains heavily skewed towards micro enterprises, which represent 97% of the registered base.
Identifying medium enterprises as a strategic lever in achieving the national goal of Viksit Bharat @2047, the report argues that their current challenges—ranging from poor access to finance to a lack of dedicated infrastructure—are limiting their scale and global competitiveness.
Six focus areas to unlock scale, innovation, and exports
The policy document outlines a six-pillar strategy to address systemic bottlenecks:
-
Tailored financial solutions: Proposals include a working capital scheme linked to enterprise turnover, a ₹5 crore MSME credit card facility at market-linked rates, and a fast-track funding channel through retail banks with MSME Ministry oversight.
-
Technology and Industry 4.0 integration: Existing Technology Centers would be upgraded into SME 4.0 Competence Centers, designed to drive adoption of smart manufacturing and sector-specific tech.
-
R&D enablement: A dedicated R&D cell within the MSME Ministry is proposed, supported by the Self-Reliant India Fund, to coordinate cluster-level innovation projects of national relevance.
-
Cluster-based testing infrastructure: New certification and compliance facilities would be developed to lower barriers to market entry and boost quality standards.
-
Skills and training alignment: Regional and sector-specific skilling initiatives would be embedded into existing entrepreneurship programs, tailored to the operational needs of medium enterprises.
-
Centralized digital portal: A new sub-platform under the Udyam portal would offer compliance tools, scheme discovery features, and AI-driven support to streamline information access and application processes.
A vision for inclusive industrial growth
The report stresses that medium enterprises, if properly enabled, can become key contributors to India’s export growth, job creation, and technological progress. The proposed policy framework calls for inclusive design, institutional alignment, and cooperative governance to support this transition.
By repositioning medium enterprises as innovation-first and export-ready, NITI Aayog’s roadmap aims to ensure that this segment plays a central role in India’s journey toward becoming a globally competitive economy by 2047.