Kolkata: While presenting Budget 2026, FM Nirmala Sitharaman announced measures to boost the MSME sector to further strength one of the backbones of Indian
industrial sector. She said that the Self-Reliant India Fund will be boosted by a further injection of Rs 4,000 crore in 2026-27 to support micro, small and medium enterprises.
The fund was announced in 2023 with a capital of Rs 50,000 crore which would be sanctioned as equity contribution to MSMEs. The target would be to nurture them to large units. The MSME sector the second biggest generator of employment after agriculture.
The Economic Survey indicated that the government will lay emphasis on the MSME sector. The survey presented on Jan 29 in Parliament revealed figures that suggest a very big role of the MSME sector — they have come to account for 35.4% of manufacturing, 48.58% of exports and as much as 31.1% of GDP.
The Economic Survey 2025-26 described the MSME sector as the “backbone of India’s industrial economy”. Detailing its contribution to manufacturing, exports and GDP, the survey said it is a huge employer as well. The government also said that as many as 32.82 crore individuals are employed in more than 7.47 crore businesses in the MSME sector.
Nirmala Sitharaman placed the proposal that TReDS be made as transaction platforms for all purchases from MSMEs by central public sector enterprises. The TReDS platform or the Receivables Exchange of India is a joint venture promoted by SIDBI and NSE.
