NITI report urges adopting Turkiye's model to bridge India's skill gaps

A NITI Aayog report on Monday mentioned Turkiye as one of the nations from which India can adopt global best practices for addressing skill gaps in the country's medium enterprises.

The report titled 'Designing a Policy for Medium Enterprises' listed programmes of Turkiye in addition to Canada, Singapore and Australia for encouraging medium enterprises.

The report said Turkiye's "KOSGEB provides distance training on entrepreneurship; an effective, easy and flexible entrepreneurship training without time and space constraints by E- Akademi Programme Entrepreneurship Support Programme, with preferential treatment for women, youth and handicapped entrepreneurs."  Also, observing that Turkey's e-Academy is an online training platform providing subsidised courses, enhancing accessibility for SMEs across regions, the report said, "online training programs can be offered at a subsidized rate, and free of cost for marginalized groups (as provided in Turkey's e-Academy)."  Turkiye is facing backlash in India for its support to Pakistan during Operation Sindoor, which was launched by the country to destroy terror infrastructure following the Pahalgam terror attack, in which 26 people including tourists, were killed.

India's aviation security regulator BCAS earlier this month revoked the security clearance of Turkish firm Celebi Airport Services India on grounds related to national security with immediate effect.

The NITI report said for medium enterprises to succeed in a globalized market, there is a clear need for a tailored, data-driven approach to skill development that can align with industry needs and ensure a competitive, skilled workforce.

To address challenges faced by medium enterprises, it recommended the introduction of a working capital financing scheme linked to enterprise turnover, a Rs 5 crore credit card facility at market rates and expedited fund disbursal mechanisms through retail banks, overseen by the Ministry of MSME.

The report also suggested the upgradation of existing technology centres into sector-specific and regionally customised India SME 4.0 Competence Centers to promote the adoption of Industry 4.0 solutions.

The Aayog also recommended the establishment of a dedicated R&D cell within the Ministry of MSME, leveraging the Self-Reliant India Fund for cluster-based projects of national significance.

The MSME sector contributes approximately 29 per cent to India's GDP, accounts for 40 per cent of exports, and employs over 60 per cent of the workforce.

Despite its critical role, the composition of the sector is disproportionately weighted -- 97 per cent of registered MSMEs are micro-enterprises, 2.7 per cent are small, and only 0.3 per cent are medium enterprises.

Medium enterprises, though only 0.3 per cent of MSMEs, contribute 40 per cent of MSME exports, showcasing immense untapped potential.