Overview

• The report, titled 'Enhancing MSMEs Competitiveness in India,' was jointly prepared by NITI Aayog and the Institute for Competitiveness and released on May 2, 2025.
• It highlights a rise in formal credit access for micro and small enterprises from 14% to 20% and for medium enterprises from 4% to 9% between 2020 and 2024, but notes that only 19% of MSME credit demand was met formally by FY21.
• Key recommendations include a revamp of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and expanded support from SIDBI and NBFCs to bridge the substantial credit gap of ₹80 lakh crore.
• The report identifies significant skill shortages in the MSME workforce, calling for reforms in vocational training and targeted skilling initiatives to align with industry needs.
• It emphasizes the need for state-level development of MSME-specific infrastructure, such as industrial parks and co-working spaces, and proposes measures to boost technology adoption and global market integration.