The Union Budget 2026 lays out a growth-oriented roadmap for manufacturing MSMEs, with a focus on creating champion enterprises and strengthening industrial value chains. The proposed Rs 10,000 crore MSME Growth Fund, improved credit access and liquidity support through platforms like TReDS is expected to help MSMEs plan expansion with financial confidence and better working capital management and will boost investments for medium manufacturers.
“Overall, the budget 2026 reinforces a steady shift towards building resilient, scalable manufacturing enterprises. With consistent execution, these measures can enable companies like ours to strengthen operational efficiency while contributing meaningfully to India’s broader manufacturing ambitions, said Jay Deepak Shah, CEO and Managing Partner, Jay Wood Industry.
Industry stakeholders have said that the three-pronged approach to create Champion MSMEs, including the Rs 10,000 crore growth fund, incentivising the MSME manufacturers and strong liquidity support with measures like the Rs 2,000 crore Self Reliant India Fund, as well as the CGTMSE scheme with invoice discounting, is expected to boost the already capital-starved MSMEs.
“The proposed linking of the Government e-marketplace with TReDS will help MSMEs get visibility on their payment cycles. Along with this, turning the TReDS receivables into asset‑backed securities will unlock fresh liquidity for the sector. Finally, the corporate mitra initiative to navigate the complex compliance process will help MSMEs foster growth,” said Simranjeet Singh, CEO SME and Retail Business, Anand Rathi Global Finance.
Industry players say that the budget has put in place a set of structural measures that will strengthen the MSME ecosystem, particularly the TReDS mandate, enhanced credit guarantee support and the Rs 10,000 crore SME Growth Fund. “Mandating CPSE procurement settlement via TReDS is likely to improve payment cycles and working capital efficiency over time. The integrated textile programme, cluster modernisation initiatives and skilling upgrades under SAMARTH 2.0 further support labour-intensive MSMEs. Taken together, these interventions expand access to formal credit, improve operational capability and create a clearer pathway for small enterprises to scale into competitive industrial players,” said Rahul Garg, Founder-CEO of Moglix.