MSMEs Push for Tech Upgradation Fund in Upcoming Budget
India’s MSME sector has formally requested enhanced technology upgradation funds and easier credit access in pre-Budget consultations with Finance Minister Nirmala Sitharaman.
Key Takeaways
- MSMEs seek technology upgradation fund for modernization
- Industry demands easier credit access and export market support
- Budget consultations include major industry associations
- Sector contributes 30% to GDP, employs 12 crore people
Budget Consultation Details
The meeting focused on gathering inputs for the Union Budget 2026-27, scheduled for presentation on February 1. This marks the third in a series of pre-Budget consultations conducted by the Finance Ministry.
Industry representation included major associations: Laghu Udhyog Bharti, Council for Leather Exports, Tiruppur Exporters and Manufacturers Association, India SME Forum, All-India Plastics Manufacturers’ Association and Confederation of Women Entrepreneurs.
Sector Significance and Demands
MSMEs form the backbone of the Indian economy, serving as the second largest employer after agriculture. The sector employs 12 crore people and makes substantial contributions: 30% to India’s GDP, 45% to manufacturing output, and 40% to exports.
Beyond technology funds, industry representatives emphasized the need for improved credit accessibility and government assistance in exploring international export markets.
Government Participation
The consultation saw participation from Union Minister of State for Finance Pankaj Chaudhary, the Secretary of the Department of Economic Affairs, and senior officials from both the Finance and MSME Ministries.
Earlier this week, the Finance Minister conducted similar discussions with economists and agriculture sector representatives as part of the first two consultation rounds.
Budget Context and Challenges
Finance Minister Sitharaman will present her ninth consecutive Budget amid challenging global conditions, including geopolitical uncertainties and the 50% US tariff on Indian shipments.
The upcoming Budget must address critical issues: boosting domestic demand, creating employment opportunities, and achieving sustained economic growth exceeding 8%. Currently, the government projects India’s economic growth between 6.3-6.8% for the present fiscal year.
