NITI Aayog Releases report on ‘Designing a Policy for Medium Enterprises’

New Delhi/Agartala (Tripura) May 26: Recognizing the rising influence of Micro, Small, and Medium Enterprises (MSMEs) in driving economic growth and employment, NITI Aayog released a comprehensive report titled ‘Designing a Policy for Medium Enterprises’ on Monday.

The policy roadmap outlines strategic measures to transform MSMEs into engines of future growth and development. Notably, it also highlights various forms of institutional and financial support available to MSMEs across India, with a special focus on the Northeast, including Tripura.

By addressing common industry challenges such as outdated technology and limited market access, the initiative aims to create a robust MSME ecosystem in Tripura and across the Northeast.

The promotion of MSMEs in the Northeast Region (NER), which includes Tripura along with Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Sikkim, presents vast opportunities for local enterprises. MSME units operating in Tripura and other NE States are eligible to apply for a range of benefits under this initiative.

The scheme’s sub-components—such as technology upgradation, the development of industrial estates, and tourism sector support—are designed to enhance the competitiveness and sustainability of MSMEs in the region.

Like other NS States, MSMEs in Tripura stand to benefit significantly from the scheme’s financial assistance provisions, particularly for establishing and modernizing Mini Technology Centres.

These centres are equipped to support manufacturing, product testing, research and development, and skill-based training, especially utilizing Tripura’s local natural resources.

Moreover, the scheme backs the development of both new and existing industrial estates in Tripura and other NE States as well as funds tourism infrastructure projects.

This includes common facilities such as community kitchens, cold storage units, and cultural centres within tourism clusters—key to boosting Tripura’s tourism-driven MSME potential.

Importantly, the scheme primarily targets Micro and Small Enterprises (MSEs), focusing on their long-term viability, growth, and resilience.

By addressing common industry challenges such as outdated technology and limited market access, the initiative aims to create a robust MSME ecosystem in Tripura and across the Northeast.

With government support covering up to 90% of project costs, this initiative offers a powerful impetus for Tripura’s MSMEs to innovate, scale, and contribute significantly to the state’s economy.

Besides, the NITI Aayog Report, ‘Designing a Policy for Medium Enterprises’ highlights the critical, yet under-leveraged role played by medium enterprises and outlines targeted interventions to unlock their full potential. The report was launched by Suman Bery, Vice Chairman, NITI Aayog in the presence of Dr. V.K. Saraswat, Member, NITI Aayog and Dr. Arvind Virmani, Member, NITI Aayog.

The report delves into the structural skew in the MSME sector, which contributes approximately 29% to India’s GDP, accounts for 40% of exports, and employs over 60% of the workforce. Despite its critical role, the composition of the sector is disproportionately weighted: 97% of registered MSMEs are micro enterprises, 2.7% are small, and only 0.3% are medium enterprises.

However, this 0.3% of medium enterprises contributes nearly 40% of MSME exports, underscoring their untapped potential as scalable, innovation-led units. The report identifies medium enterprises as strategic actors in India’s transition towards self-reliance and global industrial competitiveness under Viksit Bharat @2047.

The report underscores key challenges faced by medium enterprises, including constrained access to tailored financial products, limited adoption of advanced technologies, inadequate R&D support, lack of sectoral testing infrastructure, and a mismatch between training programmes and enterprise needs. These limitations hinder their ability to scale and innovate.

To address these issues, the report outlines a comprehensive policy framework with targeted interventions across six priority areas:

• Tailored Financial Solutions: Introduction of a working capital financing scheme linked to enterprise turnover; a ₹5 crore credit card facility at market rates; and expedited fund disbursal mechanisms through retail banks, overseen by the Ministry of MSME.
• Technology Integration and Industry 4.0: Upgradation of existing Technology Centers into sector-specific and regionally customized India SME 4.0 Competence Centers to promote the adoption of Industry 4.0 solutions.
• R&D Promotion Mechanism: Establishment of a dedicated R&D cell within the Ministry of MSME, leveraging the Self-Reliant India Fund for cluster-based projects of national significance.
• Cluster-Based Testing Infrastructure: Development of sector-focused testing and certification facilities to ease compliance and enhance product quality.
• Custom Skill Development: Alignment of skilling programmes with enterprise-specific needs by region and sector, and integration of medium enterprise-centric modules into existing Entrepreneurship and Skill Development Programmes (ESDP).
• Centralized Digital Portal: Creation of a dedicated sub-portal within the Udyam platform featuring scheme discovery tools, compliance support, and AI-based assistance to help enterprises navigate resources effectively.

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The report emphasizes that unlocking the potential of medium enterprises requires a shift toward inclusive policy design and collaborative governance.

With strategic support in finance, technology, infrastructure, skilling, and information access, medium enterprises can emerge as the drivers of innovation, employment, and export growth. This transformation is pivotal to realizing the vision of Viksit Bharat @2047. (PIB edited)