New Delhi, February 15 – In a bold move to supercharge India’s economic engine, the Union Budget 2026-27 has placed Micro, Small, and Medium Enterprises (MSMEs) at the heart of the nation’s growth strategy. An official statement released on Sunday outlined transformative measures designed to propel these vital businesses from local players to global competitors.
MSMEs are the backbone of India’s economy, contributing 35.4% to manufacturing output, nearly 48.58% to exports, and 31.1% to GDP. With over 7.47 crore units employing 32.82 crore people, they rank second only to agriculture in job creation.
The budget sets three core imperatives: rapid growth, fulfilling public aspirations, and enhancing capacities across regions. Under the first pillar, the government is rolling out equity support, improved liquidity, and professional guidance for MSMEs.
A standout initiative is the Rs 10,000 crore Special SME Growth Fund, aimed at fueling expansion for deserving enterprises. Complementing this, the Atmanirbhar Bharat Fund, launched in 2021, receives an additional Rs 2,000 crore infusion. To date, it has backed 682 MSMEs with Rs 15,442 crore in risk capital.
Tackling cash flow woes head-on, the Trade Receivables Discounting System (TReDS) has already disbursed over Rs 7 lakh crore. Now, Central Public Sector Enterprises (CPSEs) will be mandated to use TReDS for MSME payments. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will extend guarantees for invoice discounting.
Further innovations include integrating Government e-Marketplace (GeM) with TReDS for seamless financing and securitizing TReDS bills as asset-backed securities to unlock more liquidity. These steps promise to make MSMEs more competitive on the world stage, driving inclusive growth and employment.