The Middle Path: NITI Aayog’s 6 ideas to boost medium enterprises

1 / 7Medium enterprises make up just 0.3% of India’s MSME landscape — but contribute nearly 40% of its MSME exports. Yet, policy support for them has been lacking, with only eight central schemes tailored to their needs. A NITI Aayog-funded study by ASCI proposes a targeted roadmap to strengthen this critical but under-supported segment. The report identifies six key interventions — from working capital access to digital handholding. The report also incorporates global best practices from countries including Germany, Japan, South Korea and more.2 / 71. Facilitating financial access: The report recommends introducing a dedicated scheme under the Ministry of MSME, allowing medium enterprises to avail loans at concessional rates. This scheme should provide loans of up to a certain percentage of gross revenue, depending upon the sector of the unit (i.e. manufacturing or service), capped at ₹25 crore, with a maximum of ₹5 crore per request. For emergency needs, a credit card with a pre-approved limit of up to ₹5 crore, may be introduced. The credit facility will ensure that enterprises, which often fall through the cracks of existing MSME lending, get tailored support.3 / 72. Technology integration and Industry 4.0 adoption: The report suggests revamping MSME Technology Centres into ‘India SME 4.0 Competence Centres’ focused on digital transformation. These centres will cater to industries like electronics, engineering, sports, and flavours & fragrance, based on regional needs. Their role: Guide medium enterprises through automation, AI, and IoT adoption. The goal is to make these centres function like Germany’s Fraunhofer Institutes—supporting mid-sized firms with R&D, product development and process innovation.4 / 73. Strengthening the innovation ecosystem:  The report calls for a national-level R&D push tailored for medium enterprises. Funding can be routed through the Self-Reliant India Fund (SRIF), which has an allocation of ₹10,000 crore from the government and ₹40,000 crore from private equity/venture capital funds. The fund may be utilised by reserving 25-30% of he GoI’s share for focusing exclusively on financing projects in this regard. It also proposes a three-tier governance model — an expert committee to frame sectoral research agendas, a management group to invite proposals, and a monitoring body to track impact. 5 / 74. Cluster-based testing and quality certification: The report proposes extending the MSE-CDP scheme to medium enterprises by setting up cluster-wise testing and quality certification facilities. These would help firms meet domestic and international compliance standards — particularly critical in pharma, food processing, textiles and auto components. Implementation should start with identifying dominant sectors and their spatial concentration across states. This mirrors approaches in countries like Japan, where regional quality labs support mid-sized exporters with fast, affordable testing and certification services.6 / 75. Customised skill development: Skill gaps remain a major hurdle. The report recommends mapping the skill needs of medium enterprises by region and sector, and expanding Entrepreneurship & Skill Development Programme (ESDP) schemes to offer customised programmes. Suggestions include six-week foundation training, one-week advanced modules, and manager-level MDPs, all tailored for medium enterprise requirements. Export-oriented skills, green manufacturing, and life-cycle specific training must be prioritised.7 / 7

Source link