Boosting MSME Competitiveness: NITI Aayog's Vision for Inclusive Growth

NITI Aayog recommends easing state-level eligibility for capital and loan subsidies to enhance MSME competitiveness. The report emphasizes skill development, NBFC support, CGTMSE reforms, and technological upgrades. Key challenges include credit gaps, limited training, and technology access barriers, crucial for micro enterprises' growth and competitiveness in India.

NITI Aayog has called for the relaxation of eligibility criteria for state-level subsidy schemes aimed at capital and loan interest support to boost the competitiveness of micro, small, and medium enterprises (MSMEs).

In its report 'Enhancing MSMEs Competitiveness in India,' the think tank also advocates for improved accessibility to skill development initiatives, particularly for MSMEs hindered by location or size.

The report underscores the need for non-banking financial companies (NBFCs) to expand their operations to ensure more accessible credit to MSMEs, especially in remote areas. It also emphasizes reforming the Credit Guarantee Fund Trust and closing a significant credit gap that leaves approximately Rs 80 lakh crore unmet.

(With inputs from agencies.)