New Delhi, February 15 – The Union Budget 2026-27, placing Micro, Small, and Medium Enterprises (MSMEs) at the heart of India's growth strategy, has unveiled a comprehensive plan to help MSMEs scale up, compete globally, and integrate more deeply into domestic and international markets through financial, policy, and professional support, according to an official statement on Sunday.
The Union Budget 2026-27 has emphasized the government's commitment to strengthening MSMEs as key drivers of economic growth and employment.
Currently, MSMEs account for approximately 35.4% of India's manufacturing output, nearly 48.58% of exports, and 31.1% of the country's GDP.
With over 7.47 crore enterprises employing more than 32.82 crore people, the sector remains the second-largest employer after agriculture.
The budget outlines three key objectives aimed at accelerating growth, fulfilling the aspirations of citizens, and building capacities across regions and communities.
Under the first objective, a focused three-pronged strategy has been proposed to help MSMEs grow as champions by providing equity support, improving liquidity, and strengthening access to professional expertise.
To boost equity support, the government has announced a dedicated Rs 10,000 crore SME Growth Fund.
The aim is to nurture future champions by incentivizing eligible enterprises and supporting their expansion.
In addition, the Self-Reliant India Fund, launched in 2021, will receive an additional Rs 2,000 crore to continue supporting micro enterprises with risk capital.
As of November 30, 2025, the fund has supported 682 MSMEs with investments worth Rs 15,442 crore.
On the liquidity front, the government highlighted that more than ₹7 lakh crore has already been unlocked for MSMEs through the Trade Receivables Discounting System (TReDS).
To further strengthen the platform, it will now be made mandatory for Central Public Sector Enterprises to use TReDS for settling payments to MSMEs.
Credit guarantee support backed by CGTMSE will also be extended for invoice discounting on the platform.
The integration of GeM with TReDS is expected to enable better information-sharing with financiers, ensuring faster and cheaper access to credit.
The government also plans to introduce TReDS receivables as asset-backed securities to deepen the secondary market and improve liquidity.
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