Finance Minister Nirmala Sitharaman announced a robust ₹10,000 crore package for MSMEs in Union Budget 2026, targeting future job creators and micro-enterprises with enhanced financial support. This strategic infusion strengthens India’s entrepreneurial backbone through innovative funding and liquidity mechanisms.
SME Growth and Self Reliant Funds Boost
The package launches a ₹10,000 crore SME Growth Fund to nurture high-potential enterprises driving employment generation. Additionally, a ₹2,000 crore top-up to the Self Reliant India Fund provides critical risk capital for micro-enterprises, enabling scale-up and innovation at the grassroots level.
Comprehensive Liquidity Reinforcement
Four targeted measures unlock working capital: mandatory TReDS usage for CPSE purchases, credit guarantees for invoice discounting, GeM-TReDS integration for seamless financing, and a secondary market for trade receivables. These steps dramatically improve cash flows, reducing payment delays that hamper small business operations.
Corporate Mitras for Compliance Support
Professional institutions will train ‘Corporate Mitras’ to deliver affordable compliance services, particularly in Tier 2 and Tier 3 cities. This initiative bridges knowledge gaps, empowers MSMEs with regulatory expertise, and fosters sustainable business practices across India’s hinterland.
