New Delhi: The micro, small, and medium enterprises (MSME) sector on Wednesday called on the Government to provide greater support through enhanced technology upgradation funds and improved access to credit, as part of their pre-Budget suggestions to Finance Minister Nirmala Sitharaman for the upcoming Union Budget 2026-27.
Technology Upgradation and Export Support on Agenda
During the meeting, representatives from MSME bodies, including Laghu Udhyog Bharti, Council for Leather Exports, Tiruppur Exporters and Manufacturers Association, India SME Forum, All-India Plastics Manufacturers’ Association, and the Confederation of Women Entrepreneurs, emphasized the need for financial and technical support to strengthen the sector.
The MSMEs also pitched for assistance to explore global export markets, citing challenges faced due to competition, logistics costs, and changing trade policies. Sources indicated that the meeting focused on strategies to enhance productivity, competitiveness, and sustainable growth of MSMEs across India.
MSMEs: Backbone of India’s Economy
MSMEs, which employ over 12 crore people nationwide, play a pivotal role in India’s economic landscape. The sector contributes nearly 30% to the country’s GDP, 45% to manufacturing output, and 40% to exports. Experts highlighted that supporting MSMEs is crucial not only for economic growth but also for job creation and inclusive development.
Participation of Key Government Officials
The pre-Budget consultation was attended by Union Minister of State for Finance Pankaj Chaudhary, Secretary of the Department of Economic Affairs, and senior officials from both the Ministry of Finance and the Ministry of MSME. This meeting marked the third round of annual pre-Budget consultations conducted by the Finance Ministry to gather inputs from diverse sectors before finalizing the Budget.
Earlier this week, Finance Minister Nirmala Sitharaman had met economists and representatives from the agriculture sector in the first two rounds of consultations. She is expected to present her ninth consecutive Budget on February 1, 2026, amid global geopolitical uncertainties and the impact of steep U.S. tariffs of 50% on certain Indian exports.
Focus on Economic Growth and Job Creation
The upcoming Budget is expected to address key issues such as boosting domestic demand, enhancing employment opportunities, and supporting sectors that drive sustainable economic growth. The government estimates that India’s economy will grow between 6.3% and 6.8% during the current fiscal year, while aiming for a sustained 8%+ growth trajectory in the medium term.
MSMEs Seek Policy Reforms for Competitive Edge
Industry leaders stressed that timely policy reforms, easier access to credit, and investment in technology are essential to enhance the global competitiveness of Indian MSMEs. The sector is optimistic that enhanced government support will enable expansion, diversification, and stronger integration into global value chains.
