Budget 2026 boosts India’s SMEs with Rs 10,000 crore fund, cluster revival and TReDS-linked financing to ease liquidity and scale businesses.
Finance Minister Nirmala Sitharaman unveils Budget 2026 measures to strengthen India’s SMEs with Rs 10,000 crore support (Photo: X)
Union Budget 2026: The Union Budget 2026 brings a ray of hope for small and medium enterprises in India and the government has announced a package of Rs 10,000 crore to give a boost to growth and make it easier to access funds. Since the MSME sector contributes 30% to the GDP and provides employment to over 110 million people, this package is centered on reviving old industries, overcoming the hurdle of funding and honing the competitive advantage of the sector both domestically and internationally.
Small and medium enterprises micro, small and medium enterprises are operating with limited investment and turnover, but they are the backbone of the manufacturing and service sectors in India while they are the engines that produce goods, provide services and facilitate trade. SMEs are important for employment generation, development of regions and export growth.
The Budget proposes a Rs 10,000 crore SME Growth Fund to facilitate scaling up by promising entities, and a Rs 2,000 crore top-up in the Self-Reliant India Fund to support micro enterprises. It also aims to revive 200 legacy industry clusters and integrate the Government e-Marketplace with TReDS to improve liquidity and reduce delays in payments. The SME sector will gain access to new sources of funding through the conversion of TReDS receivables into asset-backed securities.
A Rs 10,000 crore SME Growth Fund will be launched to back high-potential enterprises selected on performance-linked criteria. In addition, the Self-Reliant India Fund will receive a Rs 4,000 crore top-up, ensuring sustained access to risk capital for promising firms. The goal is clear to build globally competitive Indian SME champions rather than merely sustaining survival businesses.
The Budget proposes reviving 200 legacy industrial clusters through infrastructure and technology upgrades, alongside new schemes for container manufacturing, textiles, sports goods and rural industries. Liquidity will improve through mandatory TReDS adoption by CPSEs, credit guarantees for invoice discounting and securitisation of receivables. A new Corporate Mitra network in Tier-II and Tier-III cities will offer affordable compliance and advisory support.
