MSMEs Present Budget Wishlist to Finance Minister
Key stakeholders from India's vital Micro, Small, and Medium Enterprises (MSME) sector presented a crucial set of demands to Finance Minister Nirmala Sitharaman during a pre-Budget consultation meeting held on Wednesday. The sector, which employs over 100 million people and contributes approximately 30% to India's GDP, sought easier access to finance, solutions for delayed payments, and support for better technology adoption.
Core Demands for Growth and Competitiveness
Representatives from leading MSME associations emphasized several critical areas needing government intervention. The primary focus was on easing compliance burdens and improving the overall ease of doing business for small enterprises. Participants also strongly advocated for measures that would enhance market access for their products, a key requirement for scaling up exports from the SME sector.
"We are hoping for long-term measures from the government to strengthen this key segment of the economy," stated Vinod Kumar, President of the India SME Forum, highlighting the industry's expectation for sustained policy support.
Government Engagement and Fiscal Strategy
This meeting was the third pre-Budget consultation chaired by Finance Minister Nirmala Sitharaman as part of the ministry's exercise to gather inputs for the upcoming Union Budget 2026-27. The budget is scheduled to be presented in Parliament on 1 February. The meeting was also attended by Minister of State for Finance Pankaj Chaudhary, the Secretary of the Department of Economic Affairs, and senior officials from both the finance and MSME ministries.
The discussions are designed to help the government shape its fiscal strategy for FY27, making the budget-making process more comprehensive. The MSME sector has consistently been a focus in recent budgets, with past initiatives like the Emergency Credit Line Guarantee Scheme (ECLGS), Production Linked Incentive (PLI) schemes, and the Raising and Accelerating MSME Performance (RAMP) programme aiming to bolster the sector.
A Sector Poised for Support
In view of the sector's immense importance to the Indian economy, the dialogue also covered the need for a further expansion of the digital payment infrastructure. The government's pre-budget consultations typically cover a wide range of stakeholders, and the inputs from the MSME sector are expected to play a pivotal role in formulating policies that drive inclusive and resilient economic growth.
