Union Budget
Budget 2026: Rs. 10,000 crore fund to create India’s next MSME champions!
Presenting the Union Budget 2026–27 in Parliament on Sunday, Finance Minister Nirmala Sitharaman said the Government is guided by three Kartavyas, the first of which is to accelerate and sustain economic growth by enhancing productivity, competitiveness, and building resilience against volatile global dynamics.
Recognising micro, small, and medium enterprises (MSMEs) as a vital engine of growth, the Finance Minister proposed a three-pronged approach to help them grow as “Champions” under the first Kartavya.
Equity Support:
Sitharaman introduced a dedicated ₹10,000 crore SME Growth Fund to create future champions, incentivising enterprises based on select criteria. She also proposed topping up the Self-Reliant India Fund, set up in 2021, with ₹2,000 crore to support micro enterprises and maintain their access to risk capital.
Liquidity Support:
The Finance Minister highlighted that over ₹7 lakh crore has been made available to MSMEs through TReDS. To fully leverage its potential, she proposed four measures:
Mandate TReDS as the transaction settlement platform for all purchases from MSMEs by CPSEs, serving as a benchmark for other corporates.
Introduce a credit guarantee support mechanism via CGTMSE for invoice discounting on the TReDS platform.
Link GeM with TReDS to share information with financiers about government purchases from MSMEs, enabling cheaper and faster financing.
Introduce TReDS receivables as asset-backed securities, developing a secondary market to enhance liquidity and transaction settlement.
Professional Support:
The Government will facilitate professional institutions such as ICAI, ICSI, and ICMAI to design short-term, modular courses and practical tools to develop a cadre of ‘Corporate Mitras’, particularly in Tier-II and Tier-III towns. These accredited para-professionals will help MSMEs meet compliance requirements at affordable costs.
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