NITI Aayog Releases Report on “Enhancing Competitiveness of MSMEs in India”

NITI Aayog, in collaboration with the Institute for Competitiveness (IFC), released a report on enhancing the competitiveness of India’s Micro, Small, and Medium Enterprises (MSMEs). The report identifies challenges in financing, skilling, innovation, and market access, providing sector-specific recommendations for textiles, chemicals, automotive, and food processing. While access to formal credit has improved, substantial gaps remain, with only 19% of MSME credit demand met by FY21. It also highlights skill shortages, limited investment in R&D, and barriers to technology adoption as key issues holding back MSME growth. The report calls for a revamped Credit Guarantee Fund, improved awareness of state government schemes, and targeted interventions to address these challenges.
The report emphasizes that India's MSMEs can become a significant driver of economic growth with the right support systems. It advocates for enhanced MSME support through digital marketing training, better market linkages, and collaborations with logistics providers, particularly in underdeveloped regions like northeastern and eastern India. The report suggests a more robust, adaptive, and cluster-based policy framework at the state level to foster innovation, improve competitiveness, and integrate MSMEs into global value chains. It stresses the need for consistent monitoring, data integration, and better stakeholder engagement to maximize the effectiveness of existing MSME support policies.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.