NITI Aayog’s Report on “Designing a Policy for Medium Enterprises”
The Government of India released a very important report titled Designing a Policy for Medium Enterprises by NITI Aayog. This document outlines the essential role medium enterprises play in India’s economic landscape. It marks their potential to transform into contributors to the nation’s GDP and employment. Despite being only 0.3% of the MSME sector, medium enterprises account for 40% of MSME exports. This showcases their untapped potential, which can drive growth towards the goal of Viksit Bharat by 2047.
Medium Enterprises
Medium enterprises contribute approximately 29% to the GDP and employ over 60% of the workforce. Their ability to innovate and scale is vital for achieving self-reliance and global competitiveness.
Current Challenges
Medium enterprises face several challenges. Access to tailored financial products is limited. Many lack the necessary technology and R&D support. There is insufficient testing infrastructure, and training programmes often do not align with industry needs. These barriers restrict their growth and innovation capabilities.
Proposed Policy Interventions
The report suggests targeted interventions across six key areas.
- Tailored Financial Solutions: Introduce a working capital financing scheme linked to turnover. Implement a ₹5 crore credit card facility and expedite fund disbursal through retail banks.
- Technology Integration and Industry 4.0: Upgrade existing technology centres into sector-specific India SME 4.0 Competence Centres. This will facilitate the adoption of advanced technologies.
- R&D Promotion Mechanism: Establish an R&D cell within the Ministry of MSME. This cell will leverage the Self-Reliant India Fund for national cluster-based projects.
- Cluster-Based Testing Infrastructure: Develop testing and certification facilities focused on specific sectors. This will enhance compliance and product quality.
- Custom Skill Development: Align skilling programmes with the specific needs of medium enterprises. Integrate enterprise-centric modules into existing Entrepreneurship and Skill Development Programmes.
- Centralized Digital Portal: Create a sub-portal within the Udyam platform. This portal will feature tools for scheme discovery, compliance support, and AI-based assistance.
Vision for Viksit Bharat @2047
The report envisions medium enterprises as key players in India’s journey towards Viksit Bharat by 2047. With strategic support in finance, technology, and infrastructure, these enterprises can drive innovation, employment, and export growth. The emphasis is on inclusive policy design and collaborative governance to unlock their full potential.
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