Medium Enterprises: NITI Aayog on MSME Policy’s Missing Middle
Why in the news
NITI Aayog said India’s medium firms, the missing middle of MSME policy, get little attention despite their export and innovation role.
Key facts
- Medium enterprises: 0.3% of MSMEs, about 40% of MSME export earnings; micro and small units make up 99% and attract most schemes.
- Average medium firm: ₹39 crore forex income, 90 employees, ₹2.07 crore yearly R&D.
- Active in pharmaceuticals, auto components and IT services, within global value chains.
- Present policy rewards staying small and informal, hurting scale, productivity and exports.
NITI Aayog recommendations
| Area | Proposal |
|---|---|
| Finance | Credit card with ₹5 crore pre-approved limit; working capital scheme; concessionary finance |
| Technology | Technology Centres become SME Competence Centres (Industry 4.0) |
| R&D | R&D cell in the Ministry of MSME, inspired by EU funding models |
| Clusters | Cluster Development Programme extended to medium firms for testing, certification, compliance |
| Digital | Central portal for schemes, compliance and market research |
Significance
- Support is vital for exports, manufacturing competitiveness and Make in India goals.
Exam angle
- Report by: NITI Aayog; R&D cell under Ministry of MSME.
- Related: Industry 4.0, Cluster Development Programme.