<p>Finance Minister Nirmala Sitharaman, presenting her ninth straight budget on Sunday, desisted from the conventional political munificence for five poll-bound states and instead focused on cushioning key manufacturing sectors, especially the micro, small and medium enterprises (MSMEs), from prevailing global economic uncertainties.</p><p>Calling MSEMs "vital engines of India’s growth", Sitharaman announced the setting up of a Rs 10,000 crore dedicated growth fund aimed at incentivising small and medium enterprises (SMEs).</p><p>The finance minister also proposed topping up the Self-Reliant India Fund, set up in 2021, with Rs 2,000 crore to support micro enterprises.</p><p>"We are inspired by three kartavyas," the minister said, "accelerate and sustain growth, fulfil aspirations and build capacity", proposing liquidity, equity and professional support for the MSME sector to "help them grow like champions".</p><p>MSMEs contributed about 30% to India’s gross domestic product and 45% to exports in fiscal 2025, employing more than 32 crore people as of January 2026. </p>.Union Budget 2026 | Governemet proposes to top up Self Reliant India Fund with Rs 4,000 crore to support MSMEs.<p>To improve access and liquidity for MSMEs, the minister laid out a slew of measures to improve credit facilities by expanding the use of TReDS, an RBI-regulated electronic platform for invoice discounting by MSMEs. </p><p>The minister proposed that TReDS act as the chosen settlement platform for the purchases made by all central public sector enterprises from MSMEs. This process, she said, could also be emulated as a benchmark for transactions with other corporates.</p><p>"The FTAs signed by India in the recent past need to be effectively leveraged by MSMEs as they access the schemes announced in the budget, leading to the emergence of champions. A focused sector approach will be key to this," said Easwaran Subramanian, Partner, Deloitte India. </p><p>The government has also proposed to create a separate cadre of para-professionals called 'Corporate Mitra' to help MSMEs meet compliance requirements at an affordable cost.</p><p>"Credit access and receipt of timely payments have been major challenges for MSMEs over the years, with an estimated Rs 8.1 lakh crore locked in delayed payments, blocking working capital," said Pushan Sharma, Director, Crisil Intelligence</p>
<p>Finance Minister Nirmala Sitharaman, presenting her ninth straight budget on Sunday, desisted from the conventional political munificence for five poll-bound states and instead focused on cushioning key manufacturing sectors, especially the micro, small and medium enterprises (MSMEs), from prevailing global economic uncertainties.</p><p>Calling MSEMs "vital engines of India’s growth", Sitharaman announced the setting up of a Rs 10,000 crore dedicated growth fund aimed at incentivising small and medium enterprises (SMEs).</p><p>The finance minister also proposed topping up the Self-Reliant India Fund, set up in 2021, with Rs 2,000 crore to support micro enterprises.</p><p>"We are inspired by three kartavyas," the minister said, "accelerate and sustain growth, fulfil aspirations and build capacity", proposing liquidity, equity and professional support for the MSME sector to "help them grow like champions".</p><p>MSMEs contributed about 30% to India’s gross domestic product and 45% to exports in fiscal 2025, employing more than 32 crore people as of January 2026. </p>.Union Budget 2026 | Governemet proposes to top up Self Reliant India Fund with Rs 4,000 crore to support MSMEs.<p>To improve access and liquidity for MSMEs, the minister laid out a slew of measures to improve credit facilities by expanding the use of TReDS, an RBI-regulated electronic platform for invoice discounting by MSMEs. </p><p>The minister proposed that TReDS act as the chosen settlement platform for the purchases made by all central public sector enterprises from MSMEs. This process, she said, could also be emulated as a benchmark for transactions with other corporates.</p><p>"The FTAs signed by India in the recent past need to be effectively leveraged by MSMEs as they access the schemes announced in the budget, leading to the emergence of champions. A focused sector approach will be key to this," said Easwaran Subramanian, Partner, Deloitte India. </p><p>The government has also proposed to create a separate cadre of para-professionals called 'Corporate Mitra' to help MSMEs meet compliance requirements at an affordable cost.</p><p>"Credit access and receipt of timely payments have been major challenges for MSMEs over the years, with an estimated Rs 8.1 lakh crore locked in delayed payments, blocking working capital," said Pushan Sharma, Director, Crisil Intelligence</p>