Mumbai: As India moves towards its USD 5 trillion economy goal and the Viksit Bharat vision for 2047, non-banking financial companies (NBFCs) are expected to play a major role in funding small businesses
and self-employed people. According to Ravi Narayanan, MD & CEO of SMFG India Credit, overall credit demand remains healthy, but growth is likely to slow slightly in FY26.
NBFC assets under management (AUM) are expected to grow between 12 percent and 18 percent, mainly driven by MSMEs, gold loans and retail credit. However, microfinance may grow slower at 4 percent to 15 percent due to asset quality issues.
He said Budget 2026-27 should focus on three areas: liquidity, recovery and tax relief. A special refinance window for NBFCs and wider credit guarantees for MSMEs can lower borrowing costs and improve credit flow. He also suggested reducing the SARFAESI recovery threshold for NBFCs to improve loan recovery and removing the 10 percent TDS on interest income to ease cash flow.
Textiles and artisans want faster support
Darshan Dudhoria, CEO of Indian Silk House Agencies, said the handloom and heritage textile sector should be treated as an important economic industry. These sectors create jobs and have strong global demand.
He expects faster GST refunds, easier access to working capital and clear incentives for growth in smaller cities. He said self-reliance will come from building full value chains, covering design, branding, retail and manufacturing in India. Budget support for finance, skills and export infrastructure can attract long-term private investment into cultural and consumer businesses.
Investors look for stable tax and FDI rules
BL Bajaj, Founder and MD of Dynamic Orbits, said Budget 2026 is a chance to strengthen investor confidence. He said a simple and predictable capital gains and corporate tax system can attract long-term global capital.
He also called for clearer rules for foreign investment and cross-border transactions, as India continues to receive over USD 80 billion in FDI. With more than 2 lakh startups in India, he said targeted support for private equity and venture capital is needed. Together, these steps can improve ease of doing business, boost foreign trust, and support steady economic growth.
