INDUSTRY
NITI Aayog calls for new measures to help medium enterprises drive growth
- IBJ Bureau
- May 27, 2025
NITI Aayog has recommended several targeted interventions to help medium enterprises emerge as drivers of innovation, employment and exports. They include loans at concessional rates, a working capital financing scheme linked to turnover and a Rs 5-crore credit card facility to bridge funding gaps.
In a report titled, Designing A Policy For Medium Enterprises, NITI Aayog has suggested that the government conceptualise a scheme that would focus on tailor-made financial tools, technology integration and industry 4.0, cluster-based testing facilities, R&D and skill development. A centralised digital portal for information has also been mooted.
The report underscores key challenges faced by medium enterprises, including constrained access to tailored financial products, as medium enterprises receive fewer priority sector loans compared to micro enterprises. Medium enterprises face a credit demand gap of in excess of $10 billion.
The report of the government’s think-tank has recommended the introduction of a dedicated financing scheme under Ministry of MSME, allowing medium enterprises to get loans at concessional rates.
The report has delved into the structural skew in the MSME sector, which contributes approximately 29 per cent to India’s GDP, accounts for 40 per cent of exports and employs over 60 per cent of the workforce. Despite its critical role, the composition of the sector is disproportionately weighted: 97 per cent of registered MSMEs are micro enterprises, 2.7 per cent are small and only 0.3 per cent are medium enterprises.
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