Budget 2026: Inside the govt’s big bet on MSMEs, textiles, and jobs
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Finance Minister Nirmala Sitharaman on Sunday announced the creation of a ₹10,000-crore growth fund for small and medium enterprises, aimed at developing “SME champions”, with the Centre extending professional support through a cadre of “corporate mitras”. During her Budget 2026 speech, she said the government will also provide liquidity support by topping up the Self-Reliant India Fund with ₹2,000 crore, outlining a three-pronged strategy to strengthen the sector.
Highlighting efforts over the past decade, Sitharaman said the government has undertaken multiple initiatives to improve infrastructure and the overall business ecosystem. The finance minister also proposed additional measures for MSMEs, including steps to ensure easier access to credit.
Self-Reliant India Fund
Sitharaman has announced that the Self-Reliant India Fund will be topped up by ₹4,000 crore in 2026-27 to support MSMEs. The fund was announced in 2023 to infuse ₹50,000 crore in equity funding into MSMEs with the potential and viability to grow into large units.
While presenting the Budget 2026-27, the minister also proposed an integrated textile programme with five sub-parts, a move that could help the sector, which is facing challenges due to steep 50% tariffs imposed by the US.
Natural Fibre Scheme
In her Budget speech, she proposed Natural Fibre Scheme, Textile Expansion, and Employment Scheme, and National Handloom and Handicraft programme.
January 2026
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The minister also proposed to make TReDS as transaction platforms for all purchases from MSMEs by central public sector enterprises.
TReDS platform - Receivables Exchange of India Ltd (RXIL) is a joint venture promoted by SIDBI and NSE. The minister added that the government will continue to develop infrastructure in Tier 2, and Tier 3 cities.
Corporate mitras
In efforts to help the MSMEs, the government will develop a cadre of "corporate mitras" in Tier-II and Tier-III cities. Finance Minister Nirmala Sitharaman made the announcement as she presented the Union Budget.
In her speech, the minister also said the government will set up an 'Education to Employment and Enterprise' Standing Committee to recommend measures focusing on the services sector. The cadre of "corporate mitras" will help Micro, Small and Medium Enterprises (MSMEs) to meet their compliance requirements at affordable costs.
Also, the government will facilitate professional institutions such as ICAI, ICSI, ICMAI to design short-term modular courses and practical tools to develop the cadre of corporate mitras, Sitharaman said.
In announcements related to the agriculture sector, the minister said support will be provided for high-value crops such as sandalwood, walnuts apart from having a coconut promotion scheme to increase production. Also, the Centre will partner with states to restore glory of sandal wood ecosystem, she added.