Budget 2026: Unleashing MSME Growth by Simplifying Regulations and Boosting Capital

• MSMEs are vital to India's economy, contributing significantly to GDP, manufacturing, exports, and employment, yet face regulatory complexity and capital constraints.
• Budget 2026 must move beyond short-term relief to address systemic bottlenecks, focusing on simplifying regulatory frameworks and easing capital access.
• Current compliance architecture, designed for large enterprises, imposes disproportionately high costs on micro and small units, hindering formalization.
• Regulatory complexities directly cause working capital stress for MSMEs; solutions like quarterly GST filing and automated refunds can provide liquidity relief.
• Access to timely and affordable credit, along with targeted support for innovation and technology adoption, is crucial for MSME scale and competitiveness.

Why It Matters: Budget 2026 must simplify regulations and improve capital access to unlock the full potential of India's MSMEs.