The NITI Aayog has shared a roadmap for transforming medium enterprises into future growth engines, pointing out that the segment has so far played an 'under-leveraged role', and 'targetted interventions' are needed to unlock the full potential.
The report, shared on May 26, said 97% of the registered MSMEs in India are micro enterprises, 2.7% are small, and only 0.3% are medium enterprises. However, the striking feature is that this miniscule pocket contributes nearly 40% of the total MSME exports, said NITI Aayog, calling their potential as 'untapped' and 'scalable'. "The report identifies medium enterprises as strategic actors in India's transition towards self-reliance and global industrial competitiveness under Viksit Bharat @2047," the report said.
The entire MSME sector contributes approximately 29% to India’s GDP, and accounts for 40% of exports, said NITI Aayog, underscoring the critical role of the sector. The report has highlighted six priorities that the comprehensive policy framework aims to target.
These include:
-A working capital financing scheme linked to turnover, with a Rs 5 crore credit card facility, expedited fund disbursal with oversight from the Ministry of MSME.
-Plan for a sector-specific and regionally customized SME 4.0 'Competence Centers' to promote adoption latest technological solutions.
-A proposed R&D cell within the Ministry of MSME that will plan cluster-based projects of national significance.
-Sector-focused testing and certification facilities to make sure India's product quality matches necessary standards.
-Skilling programmes for specific needs of regions and sectors, integrating them with existing Skill Development Programmes (ESDP).
-A dedicated sub-portal within the Udyam platform for compliance support AI-based assistance for enterprises
"While small enterprises often spark innovation at the grassroot level, medium enterprises have the scale and capacity to drive large-scale employment, boost exports, and significantly contribute to GDP growth," said Suman Bery, vice chairman of NITI Aayog.
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