Enhancing Medium Enterprises: A Study by Niti Aayog

A recent study commissioned by Niti Aayog and conducted by the Administrative Staff College of India highlights significant recommendations for empowering medium enterprises in India. These recommendations aim to unlock the complete potential of these enterprises through various strategic interventions.

Key Recommendations

• Targeted Interventions:
  • Technological advancements
  • Skilling initiatives
  • Infrastructure development
• Financial Support:
  • Introduction of a working capital financing scheme linked to annual revenues.
  • Proposal for a ₹5-crore credit card facility at market rates.
  • Expedited fund disbursal mechanisms through retail banks.

Current Contribution of MSME Sector

• Accounts for approximately 29% of India’s GDP.
• Provides 40% of the exports.
• Employs over 60% of the total workforce.

Composition of the MSME Sector

• Micro Enterprises: 97% of registered MSMEs.
• Small Enterprises: 2.7% of registered MSMEs.
• Medium Enterprises: 0.3% of registered MSMEs, yet contribute nearly 40% of MSME exports.

The study underscores the significant role of medium enterprises in exports and emphasizes the necessity to scale up their operations for overall economic growth.