Finance Minister Nirmala Sitharaman on Sunday announced a series of measures in the Union Budget 2026–27 aimed at strengthening Micro, Small and Medium Enterprises (MSMEs), including the launch of a dedicated ₹10,000-crore SME Growth Fund to nurture future industry champions.
Presenting the Budget in Parliament, the Finance Minister said the government, guided by Prime Minister Narendra Modi, has consistently prioritised action-driven reforms to accelerate and sustain economic growth. She noted that MSMEs remain a vital engine of India’s economy and play a central role in enhancing productivity, competitiveness and economic resilience amid global uncertainties.
As part of a three-pronged strategy to develop MSMEs as “Champions”, the Finance Minister announced equity support through the creation of a ₹10,000-crore SME Growth Fund. The fund will incentivise enterprises based on select performance and growth criteria, with the objective of scaling up high-potential firms.
In addition, the Self-Reliant India Fund, established in 2021, will be topped up with ₹2,000 crore to continue providing risk capital support to micro enterprises and ensure sustained access to equity financing.
To enhance liquidity for MSMEs, the Budget proposes four measures to leverage the full potential of the Trade Receivables Discounting System (TReDS), through which over ₹7 lakh crore has already been made available to MSMEs.
The proposed measures include:
* Making TReDS the mandatory transaction settlement platform for all purchases from MSMEs by Central Public Sector Enterprises (CPSEs), setting a benchmark for private corporates.
* Introducing a credit guarantee mechanism through CGTMSE for invoice discounting on the TReDS platform.
* Linking the Government e-Marketplace (GeM) with TReDS to share information on government purchases from MSMEs, enabling faster and cheaper financing.
* Allowing TReDS receivables to be securitised as asset-backed securities, helping develop a secondary market and improving liquidity.
The third pillar of the MSME strategy focuses on professional support. The Finance Minister announced that professional bodies such as the ICAI, ICSI and ICMAI will be encouraged to design short-term, modular courses to train a cadre of ‘Corporate Mitras’, particularly in Tier-II and Tier-III towns.
These accredited para-professionals will assist MSMEs in meeting compliance requirements at affordable costs, reducing operational burdens and enabling businesses to focus on growth.
The Finance Minister said the comprehensive measures announced in the Budget are aligned with the government’s first kartavya of accelerating and sustaining economic growth by empowering MSMEs to scale up, access timely finance and operate more efficiently.
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