{"id":19612,"date":"2026-02-17T13:23:07","date_gmt":"2026-02-17T07:53:07","guid":{"rendered":"https:\/\/theeducationoverview.in\/?p=19612"},"modified":"2026-02-17T13:23:07","modified_gmt":"2026-02-17T07:53:07","slug":"union-budget-2026-27-building-champion-msmes-for-a-global-india","status":"publish","type":"post","link":"https:\/\/theeducationoverview.in\/?p=19612","title":{"rendered":"Union Budget 2026-27: Building Champion MSMEs for a Global India"},"content":{"rendered":"

Union Budget 2026-27: Building Champion MSMEs for a Global India<\/strong><\/span><\/h2>\n

\nStrengthening MSMEs for Scale, Competitiveness & Global Integration<\/strong><\/span><\/h3>\n

Posted On: 15 FEB 2026 10:43AM by PIB Delhi<\/strong><\/span><\/p>\n\n\n\n
Key Takeaways<\/strong><\/span><\/p>\n
    \n
  • The Union Budget 2026-27 proposed a\u00a0three-pronged approach\u00a0to help Indian Micro, Small & Medium Enterprises (MSMEs) grow as Champions by\u00a0providing equity, liquidity and professional support to MSMEs.<\/strong><\/span><\/li>\n
  • The Budget proposes\u00a0complete removal of the current value cap of \u20b910 lakh per consignment on courier exports\u00a0to support aspirations of India\u2019s small businesses, artisans and start-ups.<\/strong><\/span><\/li>\n
  • MSMEs account for ~35.4% of manufacturing, ~48.58% of exports, and 31.1% of GDP in India; with 7.47 crore+ enterprises employing 32.82 crore+ persons.<\/strong><\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \n

    Union Budget 2026\u201327 Places MSMEs at the Centre of Growth<\/strong><\/span><\/p>\n

    Micro, Small & Medium Enterprises (MSMEs)\u00a0are of great importance in India’s economic development, serving as engines of growth and drivers of socio-economic progress. These enterprises are integral to job creation, particularly in rural and backward areas, contributing significantly to the reduction of unemployment and poverty.\u00a0With 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\u00a0~35.4% of manufacturing, ~48.58% of exports, and 31.1% of GDP\u00a0in India.<\/strong><\/span><\/p>\n

    With a focused commitment to the poor, underprivileged, and disadvantaged, the Budget outlines\u00a0three key Kartavyas:\u00a0to accelerate and sustain economic growth; to fulfil the aspirations of the people; and to build capacities while ensuring that every family, community, region, and sector has equitable access to resources, amenities, and opportunities for meaningful participation in the nation\u2019s development.<\/strong><\/span><\/p>\n

    Under the first Kartavya, the Budget proposes a\u00a0three-pronged approach\u00a0to help MSMEs grow as champions, by providing equity support, enhancing liquidity, and strengthening access to professional and managerial expertise<\/strong><\/span><\/p>\n

    \n

    Budget Reforms and Strategic Initiatives for MSME Sector<\/strong><\/span><\/p>\n

    The Ministry of Micro, Small & Medium Enterprises\u00a0envisions a vibrant MSME sector by promoting its growth and development. \u00a0It primarily supports states in promoting entrepreneurship, generating employment and livelihood opportunities, and strengthening the competitiveness of MSMEs.\u00a0Over the years, the Budget outlay for the Ministry has been on a consistent rise, focusing on the long-term goal to enhance the performance of MSMEs through skill and entrepreneurship development.<\/strong><\/span><\/p>\n

    The Union Budget 2026\u201327 introduces multiple measures to strengthen the MSME sector by enhancing financial support, promoting innovation, and easing regulatory compliance. Through these initiatives, the Government aims to improve the competitiveness of MSMEs in both domestic and global markets.<\/strong><\/span><\/p>\n

    Three-pronged approach\u00a0to help MSMEs grow as Champions under first Kartavya<\/strong><\/span><\/p>\n

    Equity Support:\u00a0Under equity support measures, a dedicated\u00a0\u20b910,000 crore SME Growth Fund\u00a0has been announced to generate future champions by incentivizing enterprises based on defined eligibility criteria. In addition, the\u00a0Self-Reliant India (SRI) Fund, established in 2021, will be increased with \u20b92,000 crore\u00a0to sustain support for micro enterprises and ensure continued access to risk capital.\u00a0Notably, the SRI Fund has assisted 682 MSMEs by way of investment worth \u20b915,442 crore (as of 30 November 2025).\u00a0<\/strong><\/span><\/p>\n

    Liquidity Support:\u00a0On this front, \u20b97 lakh+ crore has already been unlocked for MSMEs through the TReDS platform. To fully harness its potential,\u00a0four key measures have been announced-<\/strong><\/span><\/p>\n

      \n
    1. \n
        \n
      1. Mandate TReDS as the settlement platform for all purchases from MSMEs by CPSEs, setting a benchmark for other corporates.<\/strong><\/span><\/li>\n
      2. Introduce CGTMSE-backed credit guarantee support for invoice discounting on TReDS platform.<\/strong><\/span><\/li>\n
      3. Integrate GeM with TReDS to enable information-sharing with financiers on government MSME purchases, facilitating faster and cheaper credit.<\/strong><\/span><\/li>\n
      4. \n
        \n\n\n\n
        Understanding TReDS<\/strong><\/span><\/p>\n

        TReDS is an electronic platform facilitating\u00a0financing, discounting of trade receivables of MSMEs\u00a0via multiple financiers. The receivables can be due from corporates, other buyers, incl. Government Departments, PSUs.<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

        Introduce TReDS receivables as asset-backed securities to deepen the secondary market, improve liquidity, and speed up settlements.\u00a0<\/strong><\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

        Professional support: As per the final approach, the Government will facilitate\u00a0Professional Institutions such as ICAI, ICSI, ICMAI\u00a0to design short-term, modular courses and practical tools to develop a cadre of\u00a0\u2018Corporate Mitras\u2019, especially in Tier-II and Tier-III towns.\u00a0These accredited para-professionals will help MSMEs meet compliance requirements at affordable costs.<\/strong><\/span><\/p>\n

        Tax proposal to unlock global markets for India\u2019s small businesses<\/strong><\/span><\/p>\n

        The Budget proposes to remove the existing \u20b910 lakh limit per consignment on courier exports, which is likely to reduce friction in cross-border B2C trade.\u00a0This will help India\u2019s small businesses, artisans, and start-ups reach global markets through e-commerce. It also aims to improve the handling of rejected and returned shipments by using technology to better track and identify such consignments.<\/strong><\/span><\/p>\n

        Powering MSMEs: Policies Turning Potential into Performance\u00a0<\/strong><\/span><\/p>\n

        \n\n\n\n
        Udyam Registration Portal was launched in 2020\u00a0to enable ease of registration for MSMEs and have access to all schemes and benefits. The registration process remains free of cost, paperless and digital. Further, the\u00a0Udyam Assist Platform (UAP) Portal on was launched in January 2023, for bringing Informal Micro Enterprises (IMEs) into the formal ambit, and for availing Priority Sector Lending (PSL) benefits.<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

        The MSME sector witnessed a digital transformation milestone in 2025 with formalization on the rise.\u00a0Over 7.30 crore enterprises have been registered on Udyam Registration Portal and Udyam Assist Platform, from 1 July 2020 to December 2025.\u00a0This includes 4.37 registrations on the Udyam Portal and 2.92 crore on the Udyam Assist Platform.\u00a0<\/strong><\/span><\/p>\n

        The Prime Minister\u2019s Employment Generation Programme (PMEGP)<\/strong><\/span><\/p>\n

        PMEGP supports micro-entrepreneurs by offering margin money subsidies on bank loans. It has been expanded to include higher project costs and an enhanced scope of activities.\u00a0Since inception (FY 2008-09), till FY 2025-26 (December 2025), 10.71 lakh+ micro enterprises have been assisted with disbursement of Margin Money subsidy of \u20b929,249.43 crore, generating a total estimated employment for 87 lakh+ persons.<\/strong><\/span><\/p>\n

        MSME Champions Scheme<\/strong><\/span><\/p>\n

        The MSME Champions Scheme aims to identify and nurture select enterprises by upgrading their processes, minimizing inefficiencies, improving competitiveness, and supporting their growth to achieve excellence in both domestic and international markets.<\/strong><\/span><\/p>\n

        It has three components-\u00a0\u2018MSME-Sustainable (ZED)\u2019, \u2018MSME Competitive (LEAN)\u2019 and \u2018MSME-Innovative (Incubation, Design & IPR).\u00a0To bolster competitiveness, the MSME Champions Scheme promotes “Zero Defect, Zero Effect”\u00a0practices through ZED Certification and productivity improvements via the MSME Competitive (Lean) Scheme. Innovation is also being institutionalized via the MSME-Innovative component, which enables incubation, design interventions, and protection of IPR (Intellectual Property Rights).\u00a0<\/strong><\/span><\/p>\n\n\n\n
        \n
          \n
        • A total of 2,71,373 MSMEs registered under MSME Sustainable (ZED) Certification Scheme\u00a0&\u00a01,92,689 enterprises were certified.<\/strong><\/span><\/li>\n
        • A total of 32,077 MSMEs registered under\u00a0MSME Competitive (LEAN) Scheme\u00a0and\u00a031,987 MSMEs took the Lean pledge,\u00a0a \u201cpre-commitment\u201d to uphold values of Lean Practices & Philosophy.\u00a0<\/strong><\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

          Initiatives for promoting e-commerce and supply chains<\/strong><\/span><\/p>\n

          The rapid expansion of the\u00a0ONDC\u00a0(Open Network for Digital Commerce) ecosystem, along with the\u00a0TEAM\u00a0(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.<\/strong><\/span><\/p>\n

          Online Dispute Resolution (ODR)\u00a0<\/strong><\/span><\/p>\n

          \n\n\n\n
          DID YOU KNOW?<\/strong><\/span>
          \nODR portal was launched on 27 June 2025- MSME Day.<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

          The MSE Scheme for Online Dispute Resolution (ODR) on delayed payments, together with the\u00a0MSME ODR Portal\u00a0developed under it, establishes a structured, pre-adjudication framework that promotes amicable, dialogue-based settlements between buyers and sellers before proceedings under the MSMED Act, 2006. This mechanism enables MSMEs to recover dues efficiently while preserving ongoing business relationships.<\/strong><\/span><\/p>\n

          Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE)<\/strong><\/span><\/p>\n

          A Credit Accessibility Breakthrough,\u00a0the CGSME provides credit guarantees for credit facilities extended by Member Lending Institutions to MSEs without collateral security or third-party guarantees.<\/strong><\/span><\/p>\n

            \n
          • It celebrated 25 years in 2025 wherein it crossed 1 crore guarantees since its inception (August 2000).<\/strong><\/span><\/li>\n
          • 29.03 lakh guarantees have been approved worth \u20b93.77 lakh crore (1 January to 30 November, 2025).<\/strong><\/span><\/li>\n
          • The ceiling of guarantee coverage has been enhanced to \u20b910 crore from \u20b95 crore.<\/strong><\/span><\/li>\n
          • A special provision for MSEs promoted by transgender entrepreneurs has been introduced, providing a 10% concession in guarantee fees and enhanced guarantee coverage of 85% (effective 1\u00a0<\/sup>March 2025).<\/strong><\/span><\/li>\n<\/ul>\n

            PM Vishwakarma Scheme<\/strong><\/span><\/p>\n

            Launched in September 2023,\u00a0Vishwakarma Scheme provides end-to-end support to artisans and craftspeople of 18 trades who work with their hands and tools.<\/strong><\/span><\/p>\n

              \n
            • Under the scheme,\u00a020 lakh+ artisans are being imparted training and banking support, \u00a0and 7.7 lakh beneficiaries completed basic skill training in 2025 alone.\u00a0<\/strong><\/span><\/li>\n<\/ul>\n
                \n
              • As of 1 December 2025,\u00a030 lakh beneficiaries have been registered, out of which 23.09 lakh beneficiaries have been trained.\u00a0<\/strong><\/span><\/li>\n
              • In 2025,\u00a0\u20b92,257 crore was sanctioned to 2.62 lakh beneficiaries\u00a0in the form of collateral-free loans\u00a0and\u00a06.7 lakh beneficiaries are digitally enabled.\u00a0<\/strong><\/span><\/li>\n
              • \n
                \n\n\n\n
                DID YOU KNOW?<\/strong><\/span><\/p>\n

                30,000+ Vishwakarma beneficiaries have been onboarded on the Government e-Marketplace, increasing their access to institutional buyers.<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

                Online marketing support\u00a0is being provided to PM Vishwakarma beneficiaries via e-commerce platforms to promote the sale of their products in the domestic and international markets.<\/strong><\/span><\/li>\n<\/ul>\n

                Labour reforms\u00a0<\/strong><\/span><\/p>\n

                The Labour Codes aim to modernise India\u2019s labour ecosystem by formalising employment, simplifying compliance through digitisation, strengthening social security, and ensuring workplace safety and equity. By rationalising thresholds, streamlining procedures, reducing inspections, and enabling predictable timelines,\u00a0the reforms ease long-standing compliance burdens on MSMEs\u00a0while creating a balanced framework that supports enterprise growth and safeguards worker welfare.<\/strong><\/span><\/p>\n

                Conclusion<\/strong><\/span><\/p>\n

                Over the decades, the MSME sector has evolved into one of the most vibrant pillars of the Indian economy. By generating large-scale employment at relatively low capital cost, fostering industrialization in rural and backward regions, and supporting balanced regional development, MSMEs have contributed significantly to equitable growth and socio-economic progress. As vital ancillary partners to large industries, they strengthen the broader industrial ecosystem<\/strong><\/span><\/p>\n

                Today, MSMEs stand at the heart of India\u2019s development trajectory. With their scale, diversity, and resilience, they are well-equipped to harness the ongoing manufacturing momentum and deepen India\u2019s integration into global value chains, transitioning towards more formal, innovation-driven, and export-oriented growth.<\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

                Union Budget 2026-27: Building Champion MSMEs for a Global India Strengthening MSMEs for Scale, Competitiveness & Global Integration Posted On: 15 FEB 2026 10:43AM by PIB Delhi Key Takeaways The Union Budget 2026-27 proposed a\u00a0three-pronged approach\u00a0to help Indian Micro, Small & Medium Enterprises (MSMEs) grow as Champions by\u00a0providing equity, liquidity and professional support to MSMEs. …<\/p>\n","protected":false},"author":2,"featured_media":19613,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-19612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education-news"],"_links":{"self":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts\/19612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19612"}],"version-history":[{"count":1,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts\/19612\/revisions"}],"predecessor-version":[{"id":19614,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts\/19612\/revisions\/19614"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/media\/19613"}],"wp:attachment":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}