BS EDIT: Medium enterprises need focused policy support to unlock grow

By Business StandardPublished On Jun 3, 2025

Medium enterprises drive MSME exports and innovation

Though only 0.3 per cent of MSMEs, medium firms contribute 40 per cent of export income and lead in R&D spending

Policy focus remains skewed towards micro and small firms

The “missing middle” faces limited support, discouraging scaling and formalisation despite higher capital needs

Tailored financial solutions are essential

Proposals include a ₹5 crore pre-approved credit card and new working capital schemes to meet medium firms’ liquidity needs

Technology Centres must evolve for Industry 4.0

Transforming them into SME Competence Centres will provide access to advanced tools, skilling, and consultancy

R&D cell to boost innovation aligned with national priorities

Modelled on EU mechanisms, it will identify cluster-specific projects and invite proposals from medium enterprises

Digital access and cluster support to enhance competitiveness

A centralised portal and inclusion in Cluster Development Programmes will ease scheme access and regulatory compliance