India’s smallest businesses are set for a massive upgrade, thanks to the Union Budget 2026-27. Sunday’s official release spotlights how the government is empowering MSMEs to scale up, compete internationally, and connect seamlessly with domestic and global markets.
These enterprises power 35.4% of manufacturing, 48.58% of exports, and 31.1% of GDP, operating 7.47 crore units that sustain jobs for 32.82 crore Indians – agriculture’s closest rival in employment generation.
Framed around three duties – accelerating development, meeting citizen expectations, and building regional strengths – the budget prioritizes MSME upliftment through equity infusion, liquidity enhancement, and expert advisory services.
Headline announcements include a Rs 10,000 crore dedicated SME Growth Fund to support high-potential firms’ growth trajectories. The Atmanirbhar Bharat Fund gets a Rs 2,000 crore top-up, having already channeled Rs 15,442 crore to 682 MSMEs by November 30, 2025.
Liquidity relief comes via TReDS, which has financed over Rs 7 lakh crore in receivables. CPSEs must now route payments through this platform, with CGTMSE guarantees backing invoice discounts. GeM-TReDS integration will streamline credit access, while bill securitization as asset-backed securities floods the market with fresh capital.
This comprehensive package signals a new era for MSMEs, positioning them as engines of self-reliant India, fostering innovation, exports, and widespread prosperity.