Report on “Designing a Policy for Medium Enterprises”

Report on “Designing a Policy for Medium Enterprises”: Recently, NITI Aayog released a landmark report titled “Designing a Policy for Medium Enterprises”, outlining a strategic roadmap to transform India’s medium enterprises into key drivers of growth for Viksit Bharat @2047.

• Importance of Medium Enterprises in the MSME Ecosystem : The MSME sector accounts for approximately 29% of India’s GDP and provides employment to over 60% of the workforce.

o Distribution of MSMEs: Micro enterprises: 97% , Small enterprises: 2.7% and Medium enterprises: Only 0.3%

o Despite their small share, medium enterprises contribute nearly 40% of total MSME exports, highlighting their critical role in boosting industrial competitiveness and export growth.

• Major Highlights of Report: Medium enterprises face a credit shortfall of $10 billion, largely due to institutional and structural hurdles.

o Medium enterprises often receive fewer priority sector loans and face interest rates around 4% higher than those offered to large firms.

o Only 8 out of 18 MSME government schemes cater to medium enterprises.

o They receive just 17.81% of total MSME scheme funding, worsening their working capital constraints.