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.
- 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.
- 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- Urges R&D investment and upgradation of outdated technology.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.
- Policy Awareness Gap
- 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.
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.
