IFCI had sponsored in 1973, the Management Development Institute (MDI) at Gurgaon near Delhi in Haryana for developing and improving the quality of day-to-day management of any industrial venture. It also encourages professionalization in the management of the enterprises. It stands devoted to evolving model syllabi for training various target groups by effective training strategies, methodology, manuals and tools, facilitating and supporting Central/State governments and other agencies in executing programmes of entrepreneurship and small business development.

It also undertakes research studies in both micro and macro areas of economic and industrial development. Besides, giving training to Indian Administrative Services (IAS), Indian Foreign Services (IFS), Indian Economic Services (IES) officers and employees of major public sector undertakings like ONGC, SAIL, BHEL, IPCL etc. this institute also undertakes consultancy services and research projects in large complex organisations. MDI also coordinates with other organisation centres that are engaged in conducting entrepreneurship development programmes in the country and provide them support in various areas. It has assumed added significance particularly for training educated unemployed youth for taking up self-employment programmes.