New Delhi, May 26, 2025.
NITI Aayog today released a report titled “Designing a Policy for Medium Enterprises”, offering a comprehensive roadmap for transforming medium enterprises into future growth engines of India’s economy. The report 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 Shri 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.
