A unique feature of India’s micro , small and medium enterprises is their regional diversity. This, unlike in many other countries, is a reflection of the geographical and cultural diversity of the country. Such diversity is, alternatively, a significant latent opportunity, which probably, is paralleled by China alone. It also offers significant market opportunities for these enterprises. However, policies of the State governments, so far, have tried to follow a national pattern, rather than to grab the local opportunities. The perspective brought in by NITI Aayog paves the way for an alternative line of thinking. A true spirit of cooperative federalism can help to strengthen the national economy, as also the economies of the States. However, the State governments need to evolve region- specific strategies, rather than try to copy national level models and strategies relating to MSME development.