Top Highlights for MSMEs from Union Budget 2026-27

The Union Budget 2026–27, presented by Finance Minister Smt. Nirmala Sitharaman in Parliament, reinforces the government’s thrust on economic competitiveness, inclusive growth and MSME ecosystem strengthening under the themes of growth, aspirations and shared participation.

1. Dedicated Support to MSMEs

• ₹10,000 crore SME Growth Fund introduced to build future “Champion SMEs”, with incentives tied to performance, technology adoption and market competitiveness.

• Self-Reliant India Fund topped up with an additional ₹2,000 crore to ensure continuous access to risk capital for micro-enterprises.

• Strategic focus on creating “Champion SMEs” as national growth drivers, linking performance, scalability and innovation.

2. Strengthening Financial & Market Access

• TReDS platform to be mandated for all MSME transactions with CPSEs, enhancing liquidity and faster settlements.

• Linking GeM with TReDS to standardize and expedite payments and working capital flow for MSMEs.

• Credit Guarantee support via CGTMSE to enable invoice discounting and reduce financing limitations.

3. Skill Development & Enterprise Enablement

• MSMEs to benefit from modular courses and tools designed by professional bodies (ICAI, ICSI, ICMAI), enabling finance, compliance and digital adoption skills. 

4. Ease of Doing Business & Trade Facilitation

• Customs simplification and processes streamlined through a single digital window for faster clearances reducing delays and compliance burdens. 

• Duty-free imports for specified inputs in export-oriented segments (e.g., leather, textiles) to lower input costs for MSME exporters. 

5. Broader Growth Ecosystem Wins for MSMEs

• Large infrastructure capex (₹12.2 lakh crore) and industrial corridors bolster demand linkages for MSME supply chains. 

• Special schemes (textiles, chemicals, construction equipment) offer clustering and technology support where MSMEs are key players. 

• Continued focus on rural and women-led entrepreneurship hubs (e.g., SHE Marts) expands MSME participation in domestic markets. 

Bottom Line for Indian MSMEs

The 2026-27 Budget puts explicit policy weight on liquidity, scaling up finance, competitiveness, digital/skill empowerment, and market access for MSMEs — positioning the sector as a core engine of employment, exports and inclusive growth.