Budget 2026 Gives India’s SMEs A Rs 10,000 Crore Boost. Here’s What You GetTo keep the smallest players afloat, the SelfReliant India Fund will get a Rs 2,000 crore topup. This is expected to support micro enterprises that remain capital-starved despite credit guarantee schemes.

Budget 2026

Finace Minister Nirmala Sitharaman in her Budget rolled out a fresh push for India’s small businesses, unveiling new funds, revived clusters and tighter credit pipelines in a Budget pitch aimed at lifting the MSME backbone. The announcements mark a reset in how SMEs access capital, markets and receivables.

The government will launch a scheme to revive 200 legacy industry clusters, targeting traditional hubs that have thinned out due to credit stress and outdated technology. The move is designed to rebuild jobs and restore forgotten manufacturing zones.

Rs 10,000 crore SME Growth Fund will be introduced to scale high‑potential firms. The fund will operate alongside incentive frameworks that reward SMEs meeting select criteria such as productivity, formalisation and export readiness.

keep the smallest players afloat, the Self‑Reliant India Fund will get a Rs 2,000 crore top‑up. This is expected to support micro enterprises that remain capital-starved despite credit guarantee schemes.

The Budget also tightens the trade finance chain. The government plans to link the Government e‑Marketplace with the Trade Receivables Discounting System for information sharing, giving MSME suppliers visibility on payment cycles. In a significant shift, TReDS receivables will be turned into asset‑backed securities, creating a new tradable class that could unlock fresh liquidity for the sector.

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