NITI Aayog released a report titled “Designing a Policy for Medium Enterprises”.
- Proposes dedicated concessional credit schemes and structural reforms to support India’s medium-sized enterprises.
- Targets enterprises with:
- Investment in plant & machinery up to ₹125 crore.
- Annual turnover up to ₹500 crore.
- Report aims to address systemic gaps, also offering a blueprint for improving micro and small enterprises.
Key Policy Recommendations by NITI Aayog
1. Facilitating Financial Access
- Dedicated Working Capital Scheme: Concessional loans up to ₹25 crore.
- Medium Enterprise Credit Card:
- Pre-approved limits up to ₹5 crore.
- Quick access to emergency funds.
- NPA Norms Reform:
- Extend NPA classification from 90 to 180 days.
- Eases pressure on liquidity and ensures business continuity.
2. Technology Integration & Industry 4.0
- Upgrade existing Technology Centres into India SME Industry 4.0 Competence Centres.
- Provide support in:
- Artificial Intelligence (AI).
- Internet of Things (IoT).
- Automation technologies.
- Follow a hub-and-spoke model for scalable outreach and smooth implementation.
3. Strengthening R&D and Innovation
- Allocate 25–30% of Self-Reliant India Fund to medium enterprises’ research & development.
- Promote competition-based funding aligned with national priorities.
- Establish a three-tier governance system for oversight and transparency.
4. Cluster-Based Testing & Quality Certification
- Expand MSE-Cluster Development Programme to include medium enterprises.
- Set up sector-specific testing and certification facilities in industrial clusters.
- Focus on:
- Cost reduction.
- Export-quality compliance.
- Use of digital tools and public-private partnerships (PPP).
5. Customized Skill Development
- Real-time skill gap mapping using the MSME Sampark Portal.
- Enhance Entrepreneurship and Skill Development Programme (ESDP) with:
- Cluster-specific
- Technology-oriented and export-linked training.
- Emphasis on demand-driven modules.
6. Centralized Digital Portal for Medium Enterprises
- Create a dedicated sub-portal on Udyam
- Centralize:
- Scheme details.
- Compliance support.
- Market and finance access.
- Integrate AI-based tools for:
- Eligibility checks.
- Compliance tracking.
- Real-time regulatory and market updates.
The report emphasizes a targeted and differentiated policy approach for medium enterprises.
