Micro, Small And Medium Enterprises (MSMEs) will now avail a Rs 10,000-crore SME growth fund incentive among other major announcements, under the Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman on Sunday. The Centre has announced plans to introduce Rs 10,000-crore SME growth fund to incentivise small and medium enterprises based on select criteria.
The government also announced a top up 'Self-Reliant India' fund with Rs 2,000 crore to continue support to micro enterprises. Finance Minister Sitharaman also proposed to link the Government E-Marketplace with Trade Receivables Discounting System for information sharing.
The Budget also plans to launch a scheme to revive 200 legacy industry clusters. The government will also facilitate the creation of modular courses to train 'Corporate Mitras', which are consultants or service providers that aid MSMEs with compliance, human resource and legal requirements.
Recognising MSMEs as a vital engine of growth, FM Smt. @nsitharaman proposed a three pronged approach to help them grow as ‘Champions':
— Ministry of Finance (@FinMinIndia) February 1, 2026
👉Equity support
👉Liquidity support
👉Professional support#ViksitBharatBudget pic.twitter.com/rALMR78too
In the previous Budget for the year 2025-26, the Centre had expanded the startup credit guarantee to Rs 20 crore from Rs 10 crore, in order to make it easier for enterprises to avail loans.
Micro and small enterprises had their cover increased from Rs 5 crore to Rs 10 crore, leading to extra credit of Rs 1.5 lakh crore over the course of the next five years. Increasing the cover for startup from Rs 10 crore to Rs 20 crore reduced the guaranteed fee to 1% in 27 focus sectors.
The government had reclassified MSMEs, doubling the turnover limits for the classification of micro, small and medium enterprises. It also introduced specialised credit cards with a Rs 5 lakh limit for registered microenterprises.
Comprehensive Budget 2026 coverage, LIVE TV analysis, Stock Market and Industry reactions, Income Tax changes and Latest News on NDTV Profit.
