Seen an employee at an Engineering MSME unit on Guindy Industrial Estate in Chennai, Tamil Nadu | Photocredit: Bijoy Ghosh
Although they are important engines of employment and regional development, the medium -sized companies of India are largely excluded from government support due to a lack of consciousness and access. Only 10 percent of medium -sized companies have used one of the 18 regulations offered by the Ministry of MSME, while 90 percent are not aware of online portals that are intended to illuminate access to these benefits.
This widespread decoupling extends to credit facilities, technological upgradation – initiatives and programms for developing skills – relieving a critical gap in the government’s outreach and implementation mechanisms.
The newest Niti Aayog report entitled ‘The design of a policy for Medium Enterprises’ by Administrative Staff College of India (ASCI) with lead researcher Dr. ir. Karnak Roy and co-principal researcher Dr. Sweety Pandey adds that a stunning 82 percent of India’s medium enterprises in the survey operates without modern technologies such as AI, IoT, Secticitess, Sprootice, Secpritian. Despite flagship royal initiatives that promote industry 4.0, most companies remain cut off for various reasons.
Despite the loud proclamations of the government about supporting regulations, the basic reality paints a grim image – especially with regard to the fact that medium -sized companies form the backbone of the India industrial ecosystem. A total of 207 answers were received from beneficiaries for the survey. Insights were also collected from workshops for consultation of stakeholders.
Schedules on paper
The report emphasizes that a serious lack of consciousness on government schemes is to hinder medium -sized companies by gaining access to much needed support. Only 10 percent of medium-sized companies have used one of the 18 schemes offered by the Ministry of MSME, including well-known initiatives such as PMEGP, PM Vishwakarma, CBT-MSE and RAMP. Although the basic consciousness exists, most companies lack the detailed knowledge needed to effectively navigate and take advantage of these schemes.
In addition, 90 percent of medium -sized companies did not use online portals that were designed to distribute information about these government programs. A considerable number is also not aware of credit facilities and special financial incentives that are available through banks – where a large communication and outreach gap is applied within the MSME support ecosystem within the MSME support system.
Unskilled manpower
Research results show that a striking 88 percent of medium -sized companies do not use the government sponsored by the government.
Among the people who are aware of such programs, 31 percent find them not relevant to their specific business needs, while another 59 percent assess them as only moderately relevant.
Consultation with stakeholders further emphasize the awareness gap, where 40 percent of the respondents cannot even mention any government arrangements that focuses on the development of skills.
This is particularly worrying in view of the increasing demand for a technologically competent workforce. Yet only 55 percent of the current workforce is considered sufficiently competent, with striking shortages in critical technical areas such as automation, artificial intelligence, machine learning and advanced production.
Medium -sized companies also expressed strong concerns about the broader convenience of doing business. They called for improvements in fund payment mechanisms, simpler application processes, faster processing times and general better accessibility for government regulations and support systems.
Technological upgrade
Most medium -sized companies continue to work with outdated technology, making it difficult for them to stay competitive in a rapidly evolving world market. According to the survey, 82 percent of medium -sized companies have not integrated advanced technologies such as artificial intelligence, the internet of things or other industry 4.0 tools in their activities. Moreover, 60 percent are still dependent on outdated machines, which negatively influences both productivity and product quality.
Upgrading modern technologies and training employees remains an important challenge – in particular in the production sector, where investments are required in both physical infrastructure and digital systems. The lack of access to IT education further broadens this technological gap.
Employment production
The Micro, Small and Medium Enterprises (MSME) sector is a cornerstone of the Indian economy, which contributes almost 29 percent to the National GDP, 40 percent to total export and employment offering more than 60 percent of the workforce. Among these medium -sized companies form a small fraction – only 0.3 percent – with a total of 67,923 registered entities. Of these, 58 percent (39,395 companies) are involved in production, while the remaining 42 percent works in the service sector.
Despite their smaller share in numbers, medium-sized companies have a disproportionately large impact on employment, especially in Tier-2 and Tier-3 cities. They generate more jobs per unit than their micro and small counterparts, with each medium -sized company employing an average of 89.14 people – significantly higher than the 19.11 in small companies and 5.70 in micro -enterprises.
Published on June 27, 2025
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