NITI Aayog CEO Highlights Shortage of Medium-Sized Firms in India, Cites Institutional and Structural Challenges

NITI Aayog CEO BVR Subrahmanyam has expressed concerns over the scarcity of medium-sized companies in India, labeling it an "institutional and structural problem." He emphasized that the country has a large number of large corporations but lacks sufficient medium-sized firms that can scale up to become larger entities. This gap poses significant challenges for India's economic growth, as medium-sized companies are crucial for transitioning from small to large enterprises.

Subrahmanyam also highlighted that MSMEs are heavily impacted by regulatory burdens, which hinder their ability to operate independently. He stressed the need for deregulation and emphasized that the Prime Minister has initiated steps in this direction, with a task force working under the Cabinet Secretary to address these issues.

Furthermore, NITI Aayog is working on a program to enhance India's participation in global value chains, focusing on MSMEs. The initiative includes the launch of the "Digital Excellence for Growth and Enterprise" (Dx-EDGE) platform, aimed at empowering MSMEs through digital transformation and providing them with the necessary tools and ecosystems to become competitive and resilient.

Subrahmanyam underscored the importance of education and skilling in MSME development, stating that these are critical for India's aspiration to become a developed economy. He noted that MSMEs are the largest employment generators and play a vital role in manufacturing and exports.

Sources: Indian Express, Business Standard, Economic Times, Financial Express, CNBC TV18.