Union Budget 2026 a 'game changer' for MSME sector, say industry chambers

Bengaluru: Small industry leaders have termed the proposal to allocate Rs 10,000 crore equity capital to micro, small and medium enterprises (MSMEs), along with an additional Rs 2,000 crore equity capital allocation as a ‘game changer’. This marks a shift from credit-heavy support to a more sustainable equity-based funding model, said KR Sekar, Past President & Mentor, Direct Taxes Expert Committee, BCIC, and Partner, Deloitte.

He also welcomed the renewed thrust on manufacturing through initiatives spanning biopharma, semiconductors, electronics system manufacturing, logistics corridors, and employment-intensive sectors such as textiles and tourism.

The Budget’s emphasis on strengthening domestic manufacturing, scaling MSMEs, and bolstering infrastructure reflects a holistic development vision, noted BR Ganesh Rao, President, KASSIA.

Key announcements such as the SME Growth Fund, the top-up of Rs 4,000 crore to the Self-Reliance India Fund, and support measures integrated for traditional sectors are expected to provide critical impetus to the micro and small enterprises across the country, he said.

“These measures aim to not only enhance capital access, but also nurture competitive, export-oriented, and tech-enabled small businesses, which form the backbone of India’s industrial ecosystem,” Ganesh Rao said.

Uma Reddy, President, Federation of Karnataka Chambers of Commerce and Industry (FKCCI), said, “The Union Budget 2026-27 is a forward-looking and action-oriented Budget that reinforces India’s growth momentum, while maintaining fiscal discipline. The strong thrust on manufacturing, IT sector boost, MSME financing, infrastructure expansion, and ease of doing business aligns well with the priorities of industry and employment generation.”