Question
With reference to the NITI Aayog report “Designing a
Policy for Medium Enterprises,” consider the following statements: 1. Medium enterprises form only a small fraction of registered MSMEs, yet they contribute nearly 40% of MSME exports. 2. The report identifies challenges such as limited access to finance, weak R&D, low technology adoption, and gaps in skill development. 3. Among the interventions proposed is a new ₹5 crore credit card facility and working capital financing linked to turnover. Which of the statements given above are correct?Solution
• Statement 1 is correct. Medium enterprises constitute only 0.3% of registered MSMEs, yet they contribute ~40% of MSME exports, highlighting their underutilized potential. • Statement 2 is correct. The report cites challenges including limited financial access, inadequate R&D, low tech adoption, and mismatched skilling programs as structural issues. • Statement 3 is correct. Financial interventions include a ₹5 crore credit card facility and turnover-based working capital financing to ease liquidity constraints. Other exam-relevant facts: • Structural imbalance: 97% of MSMEs are micro enterprises, while medium units are more scalable and innovation-led. • Six interventions proposed: o Tailored finance o Industry 4.0 tech centers o R&D cells o Sectoral testing infrastructure o Custom skill development o Centralized digital portal • The reforms align with Viksit Bharat @2047 vision, focusing on innovation, exports, and employment. • The policy underscores the role of medium enterprises in ensuring self-reliance and global competitiveness.
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