New Delhi [India] May 27 (ANI): The policy think-tank of the government, NITI Aayog, suggested mechanisms such as revenue-based financing and the establishment of emergency credit lines to ensure working capital support for medium enterprises.
A recent report prepared by the Administrative Staff College of India (ASCI) for Niti Aayog highlights the need to explore mechanisms such as revenue-based financing and the establishment of emergency credit lines to ensure these businesses have the necessary liquidity for operations and expansion. Adding to that, it said, “A credit card with a pre-approved limit of up to `5 crore ‘ may be introduced.”
The Government of India has established initiatives such as the Self-Reliant India (SRI)91 Fund to bridge this gap, but there is currently no dedicated scheme for addressing the working capital needs of medium enterprises, highlighted the report.
NITI Aayog’s report also noted the need to recognise the evolving technological landscape, and strongly recommends structured support for technology integration and the adoption of Industry 4.0 practices. This includes facilitating the integration of medium enterprises into global supply chains through technological upgrades.
The report appreciates, Government of India’s initiative to establish 20 new Technology Centres (TCs) and 100 Extension Centres (ECs) under the scheme “Establishment of New Technology Centres Extension Centres” marks a significant stride towards empowering the MSME sector and skill seekers across the nation.”
To enhance innovation and long-term competitiveness, the report advocates for strengthening the Research and Development (R&D) and innovation ecosystem specifically for medium enterprises. This could involve the creation of dedicated funding and governance frameworks to promote R&D activities within this segment.
Furthermore, the report reflects the importance of enhancing support for cluster-based testing and quality certification. Establishing sector-specific testing facilities and aiding medium enterprises in obtaining necessary certifications are seen as crucial steps to improve product quality and facilitate wider market access.
The need for customised skill development programs tailored to the specific requirements of medium enterprises and aligned with technological advancements is also underscored.
Recommendations include skill mapping initiatives and the expansion of existing skill development schemes to cater to this segment.
Lastly, the report proposes the creation of a centralised digital portal to serve as a comprehensive resource for medium enterprises, improving their awareness and accessibility to various government schemes and initiatives. (ANI)
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