Budget 2026: Four Key Needs for MSME Growth and Expansion

• MSMEs are now central to India's economy, with over 6.8 crore registered units employing nearly 30 crore people by September 2025.
• Significant progress in formalization, digital adoption, and financial connectivity has been made, with nearly three-quarters of MSME transactions now digital.
• The Union Budget 2026 should focus on modernizing credit guarantee frameworks to support cashflow-based lending and expand coverage.
• Reducing compliance friction through simplified thresholds and rationalized reporting is crucial to ease the burden on small businesses.
• Investing in financial literacy and strengthening market access through consistent execution of government schemes will empower MSMEs for sustained growth.

Why It Matters: Budget 2026 must empower MSMEs for scale by modernizing credit, simplifying compliance, boosting literacy, and ensuring market access.