NITI Aayog Releases Report on Enhancing MSMEs Competitiveness in India

Current Context: NITI Aayog released the report "Enhancing MSMEs Competitiveness in India" on May 2, 2025, in collaboration with the Institute for Competitiveness (IFC).

• The report outlines systemic reforms to strengthen Micro, Small, and Medium Enterprises (MSMEs) through financing, skilling, innovation, and market access.

Key Highlights

• Credit Access: MSMEs' access to formal credit improved from 14% (2020) to 20% (2024), but a ₹80 lakh crore credit gap remains.
• Skilling & Innovation: Workforce lacks formal vocational training, limiting productivity and scalability.
• Technology Adoption: MSMEs face barriers like unreliable electricity, weak internet connectivity, and high costs.
• Policy Recommendations: Calls for revamping CGTMSE, better state-level implementation, and stronger institutional collaborations.
• The report emphasizes targeted interventions to integrate MSMEs into global value chains, making them a key driver of India's economic growth.

Question:

Q.1 What is the estimated credit gap for MSMEs as highlighted in the 2025 NITI Aayog report?
a) ₹50 lakh crore
b) ₹60 lakh crore
c) ₹80 lakh crore
d) ₹100 lakh crore

Answer: c) The report identifies a ₹80 lakh crore credit gap, underscoring the need for improved financing mechanisms.