A recent study by NeoInsights highlights strong optimism among India's micro, small and medium enterprises. These businesses eagerly await the Union Budget for 2026. They hope it will strengthen GST reforms and ensure smoother operations.
High Hopes for Business Growth
The survey shows a remarkable 86% of MSMEs anticipate business expansion in 2026. They credit expected GST reforms for this positive outlook. Finance Minister Nirmala Sitharaman's upcoming budget speech holds their attention. MSMEs want measures that reinforce operational ease and provide continuity.
"MSMEs clearly prioritize three things from Budget 2026," states the 10th NeoInsights report. "They need easier access to working capital. They seek continued government support. They also want help with digital capacity building."
What the Study Revealed
NeoGrowth, an NBFC focused on SMEs, released this study. It found that approximately 80% of MSMEs witnessed business improvement in recent months. This upward trend fuels their confidence.
The research involved over 2,000 MSMEs from 25 Indian cities. Among them, one in every two participants plans to take a business loan in 2026. They aim to use these funds for expansion.
More than 71% of respondents intend to expand their existing shops or open new outlets. This shows a strong desire to scale their physical presence. Meanwhile, 30% plan to add more products or brands to their offerings. This strategy aims to capture additional customer demand.
Consumer-facing MSMEs reported visible improvements. Sectors like automotive, beauty, food and beverage, and wellness saw the most significant gains.
Key Expectations from Budget 2026
The study notes MSMEs view the budget as a major growth opportunity. They expect policies that reinforce operational ease and business continuity.
Roughly 25% of MSMEs emphasized faster and better access to government schemes. They also want continued simplification of GST and compliance processes. Many businesses pointed to the crucial role of digital tools and online payments. These technologies improve efficiency, transparency, and customer reach.
Logistics Sector Calls for Stronger Support
Suresh Bansal, Founder & CEO of DCGpac and a DTDC Board Member, shared his views. He stated that as India enters its next economic growth phase, the Union Budget must show commitment. It should focus on sustainable manufacturing, MSME enablement, and technology-led supply chains.
"Packaging, logistics, and e-commerce form the invisible backbone of India's consumption economy," Bansal noted. "Yet they need stronger policy support to scale responsibly."
He outlined specific expectations. The budget should prioritize incentives for recyclable and eco-friendly packaging. It must rationalize GST structures on sustainable materials. The government should accelerate adoption of circular economy models like reuse and packaging-as-a-service.
"Enhanced credit access and faster GST refunds for MSMEs will significantly improve liquidity," Bansal added. "This builds resilience across the entire value chain." He also stressed the need for continued investment in digital infrastructure, AI adoption, and skill development. These steps will foster global competition.
Gems and Jewellery Sector Seeks Specific Measures
Dishi Somani, Founder of Dishis Designer Jewellery, shared her hopes for Budget 2026. She wants policy measures that support India's handcrafted and design-led jewellery sector.
Key expectations include rationalisation of GST on handcrafted jewellery. The sector also seeks improved clarity on compliance norms. Budgetary support for MSMEs, especially women-led enterprises, is crucial. Easier access to credit and incentives for exports are other important demands.
"A budget that recognises the value of artisanship will nurture creativity," Somani said. "It should encourage entrepreneurship and promote 'Make in India' jewellery. This approach will support employment and ensure long-term growth in our sector."
Beauty and Wellness Focus on Affordability
Ankit Virmani, Director of Esskay Beauty Resources, highlighted specific challenges. He feels the upcoming Budget must address the twin issues of affordability and structural growth. This is essential to truly democratize beauty and wellness in India.
"Volatile forex rates are driving up input costs," Virmani explained. "Price escalation is being felt acutely by both salons and end-consumers. We urge the government to rationalize GST and reduce customs duties on essential imports and raw materials."
He also pointed to the need for formalisation in the segment. "While the sector falls under the MSME ambit, a vast majority remains unorganized. We look forward to a framework where Skill Council certifications are linked to MSME incentives. This would encourage compliance, standardize service quality, and unlock sustainable employment opportunities."
Financing and Digital Infrastructure Needs
Clarity on Cross-Border Payments
Kunal Jhunjhunwala, Founder and CEO of airpay, discussed regulatory needs. With the upcoming Budget, MSMEs require more clarity on cross-border payments. This is vital for expanding into international trade.
"Fintech and digital payments must move beyond prioritizing scale," Jhunjhunwala stated. "They need to focus on resilience, compliance, and the depth of adoption. The policies in place will determine the growth trajectory. They will also influence the digital infrastructures built under regulation."
He added that adopting cutting-edge technologies is key. AI-based risk management and fraud detection systems can build trust. They enhance resilience and boost productivity across India's financial ecosystem.
Improving Credit Access Processes
Rajat Deshpande, CEO & Co-Founder of FinBox, commented on credit access. He acknowledged the government's focus on improving MSME credit access ahead of Budget 2026. He called it a positive signal.
"For many small businesses, the issue isn't just credit availability," Deshpande noted. "It's the speed, predictability, and ease of the process. Strengthening digital infrastructure can help. It should support smoother data sharing and credit workflows. This must lead to real simplification on the ground. Effective implementation will be key. It translates policy intent into better outcomes for MSMEs."
The collective voice of India's MSMEs is clear. They look to Budget 2026 for reforms that simplify taxes, ease financing, and build digital strength. Their optimism for growth hinges on these supportive measures.
