"MSMEs backbone of Indian economic system": Union Minister Jitan Ram Manjhi lauds Union Budget

New Delhi [India], February 1 (ANI): Union Minister for Micro, Small, and Medium Enterprises (MSMEs) Jitan Ram Manjhi on Sunday praised the Union Budget 2026-27, emphasising that the backbone of the Indian economic system, MSMEs, have gotten an increased allocation, from Rs 23,168 crore to Rs 24,566 crore. With the aim of boosting GDP, production, and exports, subsequently making India the world's third-largest economy by 2030 and a developed nation by 2047.
Speaking to the reporters, Manjhi said, "I believe this budget is entirely for MSMEs, and that's because MSMEs are the backbone of the Indian economic system. After agriculture, in every aspect--whether it's GDP, production, or exports--our MSMEs lead the way. In view of this, the 2025-26 budget of Rs 23,168 crore has been increased to Rs 24,566 crore. So, you can understand the significance of this budget for MSMEs.... This budget from the Government of India is a very good budget for MSMEs. From this perspective, the budget is aimed at becoming the world's third-largest economy by 2030 and moving toward becoming the world's leading developed nation by 2047, in which MSMEs' contribution is immense. That's why all this has been done... Significant efforts have been made in this budget to strengthen India's economic system through MSMEs, which is commendable."
Earlier today, the Union Finance Minister, Niramala Sitharaman, proposed introducing a dedicated 10,000 crores SME growth fund to create future jobs, incentivising enterprises based on select criteria. She stated that the government recognises MSMEs as a vital engine of growth, and proposes a three-pronged approach to help them grow as champions. Equity support.
"I propose to introduce a dedicated 10,000 crores SME growth fund to create future champions, incentivising enterprises based on select criteria. I also propose to top up the self-reliant India fund set up in 2021 with 2,000 crores to continue support to micro-enterprises and maintain their access to risk capital," she said.
More than Rs 7 lakh crore has been made available to MSMEs through liquidity support.
"To leverage its full potential, I propose four measures. One: mandate TREDS as the transaction settlement platform for all purchases from MSMEs by CPSEs. Survey as a benchmark for other corporates. Two: introduce a credit guarantee support mechanism through CGT-MSC for invoice discounting on the TREDS platform. Three: link GEN with TREDS to share information with financiers on government purchases from SMEs, encouraging more affordable and faster financing. Four: Introduce TREDS receivables as asset-backed securities, helping develop a secondary market, enhancing liquidity and settlement of transactions," the Minister said.
Sitharaman also noted that the government shall continue to focus on developing infrastructure in cities with over 5 lakh population, that is, Tier II and Tier III cities, which are expanded to become growth centres.
Finance Minister Sitharaman presented her record ninth consecutive Union budget today in the Parliament. (ANI)