Industry leaders across Gujarat have expressed strong support for the proposals announced by the Finance Minister in the Union Budget 2026-27, stating that the measures will significantly boost Micro, Small, and Medium Enterprises (MSMEs) through focused initiatives on growth, credit access, and enhanced competitiveness.
Positive Reception from Business Chambers
The reactions came following a Budget screening event held at the Gujarat Chamber of Commerce and Industry (GCCI) in Ahmedabad, which was attended by numerous industrialists. Rajesh Gandhi, Senior Vice-President of GCCI, highlighted that the provisions will ensure easier credit facilities for MSMEs, addressing a long-standing challenge for small businesses in accessing finance.
Cluster Rejuvenation for Global Competitiveness
Apurva Shah, Vice President of GCCI, emphasized the government's plan to rejuvenate 200 legacy industrial clusters through infrastructure and technology enhancement. This initiative is particularly beneficial for Gujarat, as the state has a strong cluster-based industrial structure. Shah noted that this move will help Gujarat MSMEs compete more effectively in the international market by modernizing their operations and improving productivity.
New Fund for Future Champions
Gokul Jaykrishna, Chairman of FICCI Gujarat, pointed to the announcement of a new Rs 10,000 crore fund dedicated to creating 'future champions' as a key highlight. This fund aims to incentivize firms based on productivity and export-readiness, which Jaykrishna described as an important announcement for MSMEs looking to scale up and expand their global footprint.
Credit Guarantee Mechanism for Lower Financing Costs
Ajit Shah, President of the Sanand Industries Association, welcomed the introduction of a credit guarantee mechanism specifically for invoice discounting on the Trade Receivables Discounting System (TReDS) platform. He stated that this measure will lower financing costs for MSMEs, making it easier for them to manage cash flow and invest in growth opportunities.
Broader Implications for Gujarat's Economy
The collective feedback from Gujarat's industry leaders underscores the budget's potential to strengthen the state's MSME sector, which is a critical driver of employment and economic growth. The focus on cluster-based development, coupled with financial support mechanisms, is expected to enhance the competitiveness of local industries on both domestic and international fronts.
While the budget has faced criticism from some quarters, such as West Bengal Chief Minister Mamata Banerjee's remarks labeling it as 'Humpty Dumpty' and lacking benefits for the common man, the positive reception in Gujarat highlights regional variations in impact. The state's industrial community remains optimistic about the implementation of these proposals, anticipating a boost in innovation, exports, and overall business vitality in the coming fiscal year.
