Mid-sized firms need focused policy support to overcome key biz challenges

Many businesses do not have the incentive to scale up or formalise and like to stay within the comfort zone of policy incentives, forgoing innovation and productivity

India’s growth has long been underpinned by the dynamism of its micro, small, and medium enterprises (MSMEs). However, within this category, a critical segment, medium enterprises, has not attracted adequate policy interest. Comprising a mere 0.3 per cent of all MSMEs, medium enterprises contribute a staggering 40 per cent of MSME export income and are present in innovation-driven sectors such as pharmaceuticals, auto components, and services. A new report by the NITI Aayog has highlighted the policy vacuum surrounding this vital segment and urges course correction.  Each of these medium enterprises on average  generates over ₹39 crore in foreign-exchange income,