Enhancing Competitiveness of MSMEs in India Report
Kartavya Desk Staff
Source: DD news
Context: NITI Aayog released a report on “Enhancing MSMEs Competitiveness in India“, highlighting key reforms needed in financing, skilling, and technology adoption.
About Enhancing MSMEs Competitiveness in India Report
• Released by: NITI Aayog in collaboration with Institute for Competitiveness (IFC).
• Objective: Provide a blueprint for MSME growth through policy reforms in credit access, skilling, innovation, and market linkages.
Key Findings
• Credit Access Improvement (2020-24) Share of micro and small enterprises accessing formal credit rose from 14% (2020) to 20% (2024). Medium enterprises increased from 4% to 9% in the same period. However, only 19% of total MSME credit demand was met, leaving a ₹80 lakh crore gap.
• Share of micro and small enterprises accessing formal credit rose from 14% (2020) to 20% (2024).
• Medium enterprises increased from 4% to 9% in the same period.
• However, only 19% of total MSME credit demand was met, leaving a ₹80 lakh crore gap.
• Skill & Technology Challenges Highlights lack of formal vocational training. Urges R&D investment and upgradation of outdated technology. Recommends support for digital marketing, branding, and cluster-based technology adoption.
• Highlights lack of formal vocational training.
• Urges R&D investment and upgradation of outdated technology.
• Recommends support for digital marketing, branding, and cluster-based technology adoption.
• Policy Awareness Gap Many MSMEs unaware of govt schemes. Advocates for better data integration, stakeholder engagement, and state-level monitoring.
• Many MSMEs unaware of govt schemes.
• Advocates for better data integration, stakeholder engagement, and state-level monitoring.
• Regional Focus Calls for increased support to MSMEs in Northeast and Eastern India with targeted incentives and logistics partnerships.
• Calls for increased support to MSMEs in Northeast and Eastern India with targeted incentives and logistics partnerships.
About NITI Aayog
What is NITI Aayog?
• NITI Aayog (National Institution for Transforming India) is India’s apex public policy advisory body, replacing the Planning Commission in 2015 to promote cooperative and competitive federalism.
• Established: January 1, 2015
• Mandate: To foster evidence-based policymaking, innovation, and sustainable development
• Chairperson: Prime Minister of India
• Vice Chairperson: Appointed by the Government.
Structure
• Governing Council: Includes all Chief Ministers, Lieutenant Governors, and Union Ministers
• Full-time and part-time members drawn from academia, industry, and administration
Other Notable Reports by NITI Aayog:
• Strategy for New India @75, India Innovation Index, SDG India Index, Export Preparedness Index, School Education Quality Index (SEQI), Ease of Doing Business: State Rankings, National Multidimensional Poverty Index.