NITI Aayog Proposes National Agency to Drive Green Transition Among MSMEs – EQ
In Short : NITI Aayog has suggested the creation of a national-level agency to support and implement the green transition of micro, small, and medium enterprises. The proposed body would help MSMEs adopt cleaner technologies, improve energy efficiency, access green finance, and align with sustainability goals, strengthening their competitiveness while contributing to India’s broader climate and development objectives.
In Detail : NITI Aayog has proposed the establishment of a dedicated national agency to facilitate and implement the green transition of micro, small, and medium enterprises across the country. The recommendation reflects growing recognition of the critical role MSMEs play in India’s economy and emissions profile.
MSMEs form the backbone of industrial activity and employment, but many face constraints in adopting sustainable practices. Limited access to finance, technology, and technical expertise often slows their transition toward energy efficiency and cleaner production methods.
The proposed national agency is envisioned as a central coordinating body that can provide policy guidance, technical support, and implementation assistance. By offering a structured framework, the agency could help MSMEs navigate the complex landscape of sustainability regulations and green technologies.
A key function of the agency would be to improve access to green finance. By working with financial institutions and government schemes, it could help design tailored financial products, risk-sharing mechanisms, and incentives that encourage MSMEs to invest in clean solutions.
Technology adoption is another major focus of the proposal. The agency could facilitate access to energy-efficient equipment, renewable energy solutions, and cleaner manufacturing processes, helping enterprises reduce costs while lowering their environmental footprint.
Capacity building and awareness are expected to be integral to the agency’s role. Training programmes, advisory services, and knowledge-sharing platforms could equip MSMEs with the skills and information needed to implement sustainable practices effectively.
The proposal also emphasizes coordination between central and state governments. A national agency could align policies, avoid duplication of efforts, and ensure that green transition initiatives reach MSMEs uniformly across regions.
Supporting MSMEs in their green transition has broader economic and social benefits. Improved efficiency and sustainability can enhance competitiveness, open access to global markets, and create new employment opportunities in green sectors.
Overall, the recommendation highlights the need for an institutional mechanism to drive MSME sustainability at scale. A dedicated national agency could play a transformative role in integrating MSMEs into India’s green growth journey while advancing climate and development goals simultaneously.
