Budget 2026–27 Unveils Rs 10,000 Crore Growth Fund To Empower Small Businesses

The Union Budget 2026–27 delivered a major boost to India’s small and medium enterprises. Finance Minister Nirmala Sitharaman announced the creation of a Rs 10,000 crore SME Growth Fund.

Presenting the Budget in Parliament, she said the fund is designed to support enterprises with strong growth potential. She added that it will help such firms emerge as future leaders of the economy. Alongside this, Sitharaman proposed an additional allocation of Rs 2,000 crore to the Self-Reliant India Fund. The fund was originally launched in 2021.

This move aims to ensure that micro enterprises continue to receive adequate access to risk capital.

Outlining the government’s broader vision, the Finance Minister stated that the leadership under Prime Minister Narendra Modi has prioritised decisive action. She said the focus has also been on structural reforms and people-centric policies.

She added that the Budget is guided by three core kartavyas (duties). The foremost duty, she explained, is to accelerate sustainable economic growth through higher productivity, improved competitiveness and stronger resilience to global volatility.

Three-Point Plan to Create MSME Champions

Emphasising the role of MSMEs as a key driver of growth and employment, Sitharaman introduced a three-point strategy to help them evolve into national and global champions.

The first element involves equity-based assistance through the newly announced Rs 10,000 crore Growth Fund.

The second focuses on easing liquidity constraints. She noted that the TReDS platform has already facilitated transactions worth over Rs 7 lakh crore for MSMEs.

To further expand its reach, the government plans to mandate TReDS for all CPSE purchases from MSMEs, introduce credit guarantee coverage for invoice discounting, integrate the GeM portal with TReDS, and allow securitisation of receivables to deepen the secondary market.

The third component centres on capacity building. The government will encourage professional bodies such as ICAI, ICSI and ICMAI to design short-term, modular programmes to train ‘Corporate Mitras’.

These accredited professionals, particularly in Tier-II and Tier-III cities, will assist MSMEs in meeting compliance requirements at reasonable costs.

Collectively, these initiatives aim to enhance competitiveness, improve access to finance and support the long-term growth of India’s MSME sector.

Also Read: Budget 2026-27 Targets Fiscal Deficit At 4.3% Over Growth And Infrastructure Push