In a world where international trade and multilateralism are plagued by uncertainty, the need of the hour is self-dependence. Budget 2026, presented by Finance Minister Nirmala Sitharaman, recognises this, unveiling a range of measures to ensure the Indian economy is increasingly self-reliant and resilient against the vagaries of global trade.
This approach is highlighted by the government’s focus on strengthening and growing India’s MSMEs. These businesses, collectively, account for 31 percent of the country’s GDP, just over a third of all manufacturing, and nearly half of India’s exports. Their success is inextricably tied to the country’s future success.
To that end, the announcement of a dedicated Rs 10,000 crore SME Growth Fund by the Finance Minister yesterday, to help India’s small and medium enterprises scale into tomorrow’s giants of industry, is encouraging. Micro enterprises are also given due consideration, with the proposal to top up the Self-Reliant India Fund by a further Rs 2,000 crore. This will ensure these fledgling businesses have access to capital for their next stage of growth.
Beyond capital access, the budget also seeks to provide MSMEs with liquidity by strengthening the Trade Receivables Discounting System (TReDS) platform. While the platform currently serves as a Rs 7 lakh crore liquidity fund for Indian businesses, the budget proposes to make TReDS the transaction settlement platform for all MSME purchases by central public sector enterprises.
Other measures, such as linking the TReDS to the government’s online procurement marketplace, GeM, thereby allowing financiers to view public purchases by MSMEs, will also go a long way toward ensuring quick and easy financing for India’s burgeoning entrepreneurs.