NITI Aayog has released a report, "Designing a Policy for Medium Enterprises," outlining a roadmap to transform medium enterprises into key drivers of India's economic growth under Viksit Bharat 2047. The report highlights the underleveraged potential of medium enterprises, which contribute significantly to MSME exports despite representing a small fraction of the sector. The report identifies key challenges, including access to finance, technology adoption, RD support, testing infrastructure, and skill development. To address these challenges, the report proposes targeted interventions across six priority areas: tailored financial solutions, technology integration and Industry 4.0 adoption, RD promotion, cluster-based testing infrastructure, custom skill development, and a centralized digital portal. The report emphasizes the need for inclusive policy design and collaborative governance to unlock the potential of medium enterprises and drive innovation, employment, and export growth.
Key Entities Referenced
NITI Aayog: Indian public policy think tank of the Government of India.
Designing a Policy for Medium Enterprises: Title of the report released by NITI Aayog.
Medium enterprises: Enterprises that are the focus of the report and policy recommendations.
Viksit Bharat 2047: A vision for India's development by the year 2047.
MSME: Micro, Small and Medium Enterprises.
India: The country to which the GDP, workforce and exports relate to.
Shri Suman Bery: Vice Chairman, NITI Aayog who launched the report.
Dr. V.K. Saraswat: Member, NITI Aayog present at the launch of the report.
Dr. Arvind Virmani: Member, NITI Aayog present at the launch of the report.
Ministry of MSME: Government ministry overseeing MSMEs; involved in financial schemes and RD efforts.
Technology Centers: Existing centers to be upgraded into India SME 4.0 Competence Centers.
India SME 4.0 Competence Centers: Centers to promote adoption of Industry 4.0 solutions.
SelfReliant India Fund: Fund to be leveraged for cluster-based RD projects.
Entrepreneurship and Skill Development Programmes ESDP: Existing skilling programs to be integrated with medium enterprise-centric modules.
Udyam: Platform for a dedicated subportal.
26 MAY 2025: Date of release of the report.
NITI Aayog
NITI Aayog Releases Report on “Designing a Policy
for Medium Enterprises”
Medium enterprises are the future large enterprises
and the drivers of Viksit Bharat @2047
The MSME sector contributes 29% to India’s GDP
and employs over 60% of the workforce
Medium enterprises, though only 0.3% of MSMEs,
contribute 40% of MSME exports, showcasing
immense untapped potential
Focus on tailored financial tools, Technology
Integration and Industry 4.0, Cluster-Based Testing
Facilities, R&D, Skill Development, and a Centralized
Digital Portal
Posted On: 26 MAY 2025 1:52PM by PIB Delhi
NITI Aayog today released a report titled “Designing a Policy for Medium Enterprises”, offering a
comprehensive roadmap for transforming medium enterprises into future growth engines of India’s economy.
The report highlights the critical, yet under-leveraged role played by medium enterprises and outlines targeted
interventions to unlock their full potential. The report was launched by Shri Suman Bery, Vice Chairman,
NITI Aayog in the presence of Dr. V.K. Saraswat, Member, NITI Aayog and Dr. Arvind Virmani, Member,
NITI Aayog.
The report delves into the structural skew in the MSME sector, which contributes approximately 29% to
India’s GDP, accounts for 40% of exports, and employs over 60% of the workforce. Despite its critical
role, the composition of the sector is disproportionately weighted: 97% of registered MSMEs are micro
enterprises, 2.7% are small, and only 0.3% are medium enterprises.
However, this 0.3% of medium enterprises contributes nearly 40% of MSME exports, underscoring theiruntapped potential as scalable, innovation-led units. 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 underscores key challenges faced by medium enterprises, including constrained access to tailored
financial products, limited adoption of advanced technologies, inadequate R&D support, lack of sectoral
testing infrastructure, and a mismatch between training programmes and enterprise needs. These limitations
hinder their ability to scale and innovate.
To address these issues, the report outlines a comprehensive policy framework with targeted interventions
across six priority areas:
Tailored Financial Solutions: Introduction of a working capital financing scheme linked to enterprise
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turnover; a ₹5 crore credit card facility at market rates; and expedited fund disbursal mechanisms through
retail banks, overseen by the Ministry of MSME.
Technology Integration and Industry 4.0: Upgradation of existing Technology Centers into sector-
(cid:108)
specific and regionally customized India SME 4.0 Competence Centers to promote the adoption of
Industry 4.0 solutions.
R&D Promotion Mechanism: Establishment of a dedicated R&D cell within the Ministry of MSME,
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leveraging the Self-Reliant India Fund for cluster-based projects of national significance.
Cluster-Based Testing Infrastructure: Development of sector-focused testing and certification
(cid:108)
facilities to ease compliance and enhance product quality.
Custom Skill Development: Alignment of skilling programmes with enterprise-specific needs by region
(cid:108)
and sector, and integration of medium enterprise-centric modules into existing Entrepreneurship and Skill
Development Programmes (ESDP).
Centralized Digital Portal: Creation of a dedicated sub-portal within the Udyam platform featuring
(cid:108)
scheme discovery tools, compliance support, and AI-based assistance to help enterprises navigate
resources effectively.
The report emphasizes that unlocking the potential of medium enterprises requires a shift toward inclusive
policy design and collaborative governance. With strategic support in finance, technology, infrastructure,
skilling, and information access, medium enterprises can emerge as the drivers of innovation, employment,
and export growth. This transformation is pivotal to realizing the vision of Viksit Bharat @2047.
Read the complete report: https://www.niti.gov.in/sites/default/files/2025-05/Designing-a-Policy-for-
Medium-Enterprises.pdf
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MJPS/SR
(Release ID: 2131261)