Niti Aayog recommends a dedicated financing scheme and a credit card for India’s medium enterprises. This move aims to support these critical units, which, despite being just 0.3% of registered MSMEs, contribute nearly 40% of MSME exports. Overall, MSMEs account for 29% of India’s GDP and 40% of exports, employing over 60% of the workforce.
The proposed scheme, under the Ministry of MSME, will offer concessional loans. These loans can reach up to a percentage of gross revenue, depending on the sector, with a cap of ₹25 crore. Individual requests are limited to ₹5 crore.
Niti Aayog suggests a medium enterprise credit card with a ₹5 crore limit. This card will help businesses manage urgent expenses like payroll or inventory during loan disbursement delays. Interest rates for these cards will align with market rates, allowing a grace period for repayment.
Also Read: NITI Aayog Internship SchemeFurthermore, the report, “Designing Policy for Medium Enterprises,” advocates for skill development. It calls for aligning training programs with specific enterprise and regional needs. Integrating medium enterprise-centric modules into existing entrepreneurship programs is also a key recommendation. These measures aim to strengthen India’s medium enterprises, paving the way for greater self-reliance and global competitiveness.
