Niti Aayog Proposes More Targeted Support to MSMEs

Tailor-made financial tools, ₹5-cr credit card among steps suggested

- FE BUREAU

TO HELP MEDIUM enterprises emerge as the drivers of innovation, employment, and exports, Niti Aayog has recommended several targeted interventions.

These include loans at concessional rates, a working capital financing scheme linked to turnover, and a ₹5 crore credit card facility to bridge funding gaps.

In a report titled "Designing a Policy for Medium Enterprises", it suggested that the government conceptualise a scheme that would focus on tailor-made financial tools, technology integration and industry 4.0, cluster-based testing facilities, R&D, skill development.

A centralised digital portal for information has also been mooted.

The report underscores key challenges faced by medium enterprises, including constrained access to tailored financial products, as medium enterprises receive fewer priority sector loans compared to micro enterprises.