Key Takeaways With over 7.47 crore enterprises employing over 32.82 crore persons, the sector holds its position as the second-largest employer after agriculture. The Union Budget 2026-27 highlights that MSMEs account for ~35.4% of manufacturing, ~48.58% of exports, and 31.1% of GDP in India. A three-pronged approach to help MSMEs grow as champions, by providing equity support, enhancing liquidity, and strengthening access to professional and managerial expertise The Budget proposes complete removal of the current value cap of ₹10 lakh per consignment on courier exports to support aspirations of India’s small businesses, artisans and start-ups. The Budget outlay for the Ministry of MSME is INR 24.56 thousand Crores as against INR 23.16 thousand Crores during 2025-26. Initiatives for MSMEs Equity Support: Under equity support measures, a dedicated ₹10,000 crore SME Growth Fund has been announced to generate future champions by incentivizing enterprises based on defined eligibility criteria. In addition, the Self-Reliant India (SRI) Fund, established in 2021, will be increased with ₹2,000 crore to sustain support for micro enterprises and ensure continued access to risk capital. Notably, the SRI Fund has assisted 682 MSMEs by way of investment worth ₹15,442 crore (as of 30 November 2025). Liquidity Support: On this front, ₹7 lakh+ crore has already been unlocked for MSMEs through the TReDS platform. To fully harness its potential, four key measures have been announced- Mandate TReDS as the settlement platform for all purchases from MSMEs by CPSEs, setting a benchmark for other corporates. Introduce CGTMSE-backed credit guarantee support for invoice discounting on TReDS platform. Integrate GeM with TReDS to enable information-sharing with financiers on government MSME purchases, facilitating faster and cheaper credit. Introduce TReDS receivables as asset-backed securities to deepen the secondary market, improve liquidity, and speed up settlements. Professional support: As per the final approach, the Government will facilitate Professional Institutions such as ICAI, ICSI, ICMAI to design short-term, modular courses and practical tools to develop a cadre of ‘Corporate Mitras’, especially in Tier-II and Tier-III towns. These accredited para-professionals will help MSMEs meet compliance requirements at affordable costs. The Budget proposes complete removal of the current value cap of ₹10 lakh per consignment on courier exports to support aspirations of India’s small businesses, artisans and start-ups. The rapid expansion of the ONDC (Open Network for Digital Commerce) ecosystem, along with the TEAM (Trade Enablement and Marketing) Initiative- which targets onboarding 5 lakh MSMEs-provides a transformative pathway for MSMEs to integrate into formal e-commerce and supply chains while significantly lowering transaction costs. 200 old industrial clusters across India will be upgraded with better roads, utilities, tech support, and common facilities. SHE-Marts will be created as retail hubs inside rural clusters to help women entrepreneurs sell locally and grow. Source : India Budget