NITI Aayog on Monday released a report offering a comprehensive roadmap for transforming medium enterprises into future growth engines of India’s economy.

The report titled “Designing a Policy for Medium Enterprises” 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.

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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, the NITI Aayog report said.

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.

To address these issues, the report outlines a comprehensive policy framework with targeted interventions across six priority areas including Tailored Financial Solutions, Technology Integration and Industry 4.0, R&D Promotion Mechanism, Cluster-Based Testing Infrastructure, Custom Skill Development, and Centralized Digital Portal.

On Tailored Financial Solutions, the report said on the 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.

For Technology Integration and Industry 4.0, the report said on the 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 said on 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.

Development of sector-focused testing and certification facilities to ease compliance and enhance product quality.

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).

The report also highlighted the 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.