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co-presented by
ASSOCIATE SPONSORS
For MSMEs, the Budget delivers one of its most consequential packages in recent years
The proposed Rs 10,000-crore SME Growth Fund will offer equity support to high-potential enterprises, incentivising MSMEs based on select performance criteria to help them scale up and expand
While announcing budget, Sitharaman said that the government proposed to introduce Rs 10,000 crore SME growth fund, and top up self-reliant India fund with Rs 2,000 crore, and providing liquidity support.
India’s economic ambitions cannot be realised without MSMEs that are more productive and globally competitive
While lower tariffs in the EU market, streamlined customs procedures and regulatory cooperation could help, non-tariff barriers can become the biggest challenge for Indian firms, say experts.
Report calls for merging similar programmes, building a central digital platform and streamlining delivery of government support to small businesses.
India’s manufacturing momentum demands Budget 2026 support through digitalisation, MSME competitiveness, skilled workforce development and sustainable infrastructure to cement the nation’s position as a leading global manufacturing hub
Stakeholders have also called for rationalisation of customs duties on critical raw materials, extension of concessional tax regimes for new units
As of March 2024, the amount of delayed payments to Micro, Small, and Medium Enterprises, adjusted for inflation, stood at Rs 7.34 lakh crore
Cautious approach to asset quality will drive risk-adjusted growth on a sustainable basis
They also urged to make it compulsory for all loans below Rs 50 lakh or Rs 1 crore to be covered under the collateral-free guarantee mechanism for MSMEs.
The fintech holds a slight advantage over its competitors as it is a bank that can take deposits from the public, and hence the cost of funds is lower for the company and boosting the margins
The NBFC, which focuses on credit-starved MSMEs, also secured an additional Rs 110 crore in debt from IDFC and Axis Bank
The new MSME-specific framework offers a minimum cybersecurity baseline, complementing July’s sweeping audit mandate for all organisations.
India’s MSMEs face cash flow challenges due to delayed payments and tariffs. The government’s Online Dispute Resolution portal offers a timely solution to resolve payment disputes efficiently
India’s MSMEs approach NBFCs more than banks for loans, given the latter’s nimbler credit underwriting approach
Sanjay Nayar, President of Assocham said that easing credit access, cutting compliance costs and introducing a government-backed skilling programme would help integrate India's MSMEs into global supply chains more effectively.
The Centre has prepared a support package worth Rs 25,000 crore under the Export Promotion Mission, to provide affordable credit, improve market access and cushion from the adverse impact of tariffs.
Veritas Finance provides working capital loans to MSMEs in urban and semi-urban areas as well as other as affordable housing loans, used commercial vehicle loans and small business loans in rural areas, focusing on MSME space
The government may move to open tendering from the nomination-based system to boost competition, encourage MSME participation and indigenisation
Last week, US President Donald Trump announced an additional 25 percent tariff on Indian goods, citing New Delhi’s links with Russia. While the measure is expected to hit 55 percent of India’s exports, the heaviest blow will likely fall on MSMEs in sectors such as gems and jewellery, textiles, and apparel. The move raises pressing questions: can India’s small and medium exporters weather the tariff shock, and are there viable opportunities to redirect trade to alternative markets?
Two & Three-Wheeler Finance AUM declined by 20 percent on-year to Rs 15,703 crore in April-June quarter, from Rs 19,689 crore in a year ago period.
Over 91% of SIDBI’s Rs 4.96 lakh crore loan book is through banks and NBFCs, helping it post Rs 4,811 crore profit in FY25 with zero net NPAs. Despite growing profits and income, rising borrowing costs squeezed margins, but low risks kept returns stable.
Medium enterprises have grown cautious in borrowing and prefer internal accruals over bank loans for business.
The NITI Aayog report said 97% of the registered MSMEs in India are micro enterprises, 2.7% are small, and only 0.3% are medium enterprises. However, this miniscule pocket of medium enterprises contributes nearly 40% of the total MSME exports.
