India, Feb. 15 -- The Government of India has issued a release:
Key Takeaways
Three-pronged approachto help MSMEs grow as Champions under first Kartavya
Understanding TReDS
Tax proposal to unlock global markets for India's small businesses
Udyam Registration Portal was launched in 2020 to enable ease of registration for MSMEs and have access to all schemes and benefits. The registration process remains free of cost, paperless and digital. Further, the Udyam Assist Platform (UAP) Portal on was launched in January 2023, for bringing Informal Micro Enterprises (IMEs) into the formal ambit, and for availing Priority Sector Lending (PSL) benefits.
The Prime Minister's Employment Generation Programme (PMEGP)
MSME Champions Scheme
Initiatives for promoting e-commerce and supply chains
Online Dispute Resolution (ODR)
DID YOU KNOW?
ODR portal was launched on 27 June 2025- MSME Day.
Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE)
PM Vishwakarma Scheme
DID YOU KNOW?
Labour reforms
TReDS is an electronic platform facilitating financing, discounting of trade receivables of MSMEs via multiple financiers. The receivables can be due from corporates, other buyers, incl. Government Departments, PSUs.
30,000+ Vishwakarma beneficiaries have been onboarded on the Government e-Marketplace, increasing their access to institutional buyers.
Union Budget 2026-27 Places MSMEs at the Centre of Growth
Micro, Small & Medium Enterprises (MSMEs) are of great importance in India's economic development, serving as engines of growth and drivers of socio-economic progress. These enterprises are integral to job creation, particularly in rural and backward areas, contributing significantly to the reduction of unemployment and poverty. With over 7.47 crore enterprises employing over 32.82 crore persons, the sector holds its position as the second-largest employer after agriculture. The Union Budget 2026-27 highlights that MSMEs account for ~35.4% of manufacturing, ~48.58% of exports, and 31.1% of GDP in India.
With a focused commitment to the poor, underprivileged, and disadvantaged, the Budget outlines three key Kartavyas: to accelerate and sustain economic growth; to fulfil the aspirations of the people; and to build capacities while ensuring that every family, community, region, and sector has equitable access to resources, amenities, and opportunities for meaningful participation in the nation's development.
Under the first Kartavya, the Budget proposes a three-pronged approach to help MSMEs grow as champions, by providing equity support, enhancing liquidity, and strengthening access to professional and managerial expertise
Budget Reforms and Strategic Initiatives for MSME Sector
The Ministry of Micro, Small & Medium Enterprises envisions a vibrant MSME sector by promoting its growth and development. It primarily supports states in promoting entrepreneurship, generating employment and livelihood opportunities, and strengthening the competitiveness of MSMEs.Over the years, the Budget outlay for the Ministry has been on a consistent rise, focusing on the long-term goal to enhance the performance of MSMEs through skill and entrepreneurship development.
The Union Budget 2026-27 introduces multiple measures to strengthen the MSME sector by enhancing financial support, promoting innovation, and easing regulatory compliance. Through these initiatives, the Government aims to improve the competitiveness of MSMEs in both domestic and global markets.
Equity Support: Under equity support measures, a dedicated Rs.10,000 crore SME Growth Fund has been announced to generate future champions by incentivizing enterprises based on defined eligibility criteria. In addition, the Self-Reliant India (SRI) Fund, established in 2021, will be increased with Rs.2,000 crore to sustain support for micro enterprises and ensure continued access to risk capital.Notably, the SRI Fund has assisted 682 MSMEs by way of investment worth Rs.15,442 crore (as of 30 November 2025).
Liquidity Support: On this front, Rs.7 lakh+ crore has already been unlocked for MSMEs through the TReDS platform. To fully harness its potential, four key measures have been announced-
Professional support: As per the final approach, the Government will facilitate Professional Institutions such as ICAI, ICSI, ICMAI to design short-term, modular courses and practical tools to develop a cadre of 'Corporate Mitras', especially in Tier-II and Tier-III towns. These accredited para-professionals will help MSMEs meet compliance requirements at affordable costs.
The Budget proposes to remove the existing Rs.10 lakh limit per consignment on courier exports, which is likely to reduce friction in cross-border B2C trade.This will help India's small businesses, artisans, and start-ups reach global markets through e-commerce. It also aims to improve the handling of rejected and returned shipments by using technology to better track and identify such consignments.
Powering MSMEs: Policies Turning Potential into Performance
The MSME sector witnessed a digital transformation milestone in 2025 with formalization on the rise. Over 7.30 crore enterprises have been registered on Udyam Registration Portal and Udyam Assist Platform, from 1 July 2020 to December 2025. This includes 4.37 registrations on the Udyam Portal and 2.92 crore on the Udyam Assist Platform.
PMEGP supports micro-entrepreneurs by offering margin money subsidies on bank loans. It has been expanded to include higher project costs and an enhanced scope of activities.Since inception (FY 2008-09), till FY 2025-26 (December 2025), 10.71 lakh+ micro enterprises have been assisted with disbursement of Margin Money subsidy of Rs.29,249.43 crore, generating a total estimated employment for 87 lakh+ persons.
The MSME Champions Scheme aims to identify and nurture select enterprises by upgrading their processes, minimizing inefficiencies, improving competitiveness, and supporting their growth to achieve excellence in both domestic and international markets.
It has three components- 'MSME-Sustainable (ZED)', 'MSME Competitive (LEAN)' and 'MSME-Innovative (Incubation, Design & IPR).To bolster competitiveness, the MSME Champions Scheme promotes "Zero Defect, Zero Effect" practices through ZED Certification and productivity improvements via the MSME Competitive (Lean) Scheme. Innovation is also being institutionalized via the MSME-Innovative component, which enables incubation, design interventions, and protection of IPR (Intellectual Property Rights).
The rapid expansion of the ONDC (Open Network for Digital Commerce) ecosystem, along with the TEAM (Trade Enablement and Marketing) Initiative- which targets onboarding 5 lakh MSMEs-provides a transformative pathway for MSMEs to integrate into formal e-commerce and supply chains while significantly lowering transaction costs.
The MSE Scheme for Online Dispute Resolution (ODR) on delayed payments, together with the MSME ODR Portal developed under it, establishes a structured, pre-adjudication framework that promotes amicable, dialogue-based settlements between buyers and sellers before proceedings under the MSMED Act, 2006. This mechanism enables MSMEs to recover dues efficiently while preserving ongoing business relationships.
A Credit Accessibility Breakthrough,the CGSME provides credit guarantees for credit facilities extended by Member Lending Institutions to MSEs without collateral security or third-party guarantees.
Launched in September 2023,Vishwakarma Scheme provides end-to-end support to artisans and craftspeople of 18 trades who work with their hands and tools.
The Labour Codes aim to modernise India's labour ecosystem by formalising employment, simplifying compliance through digitisation, strengthening social security, and ensuring workplace safety and equity. By rationalising thresholds, streamlining procedures, reducing inspections, and enabling predictable timelines, the reforms ease long-standing compliance burdens on MSMEs while creating a balanced framework that supports enterprise growth and safeguards worker welfare.
Conclusion
Over the decades, the MSME sector has evolved into one of the most vibrant pillars of the Indian economy. By generating large-scale employment at relatively low capital cost, fostering industrialization in rural and backward regions, and supporting balanced regional development, MSMEs have contributed significantly to equitable growth and socio-economic progress. As vital ancillary partners to large industries, they strengthen the broader industrial ecosystem
Today, MSMEs stand at the heart of India's development trajectory. With their scale, diversity, and resilience, they are well-equipped to harness the ongoing manufacturing momentum and deepen India's integration into global value chains, transitioning towards more formal, innovation-driven, and export-oriented growth.
References
Ministry of Micro, Small & Medium Enterprises
https://msme.gov.in/about-us/about-us-ministry
https://www.pib.gov.in/PressReleasePage.aspx?PRID2209712®3&lang1
https://www.pib.gov.in/PressReleasePage.aspx?PRID2220403®3&lang1
https://msme.gov.in/know-about-msme
https://www.pib.gov.in/PressReleasePage.aspx?PRID2142170®3&lang2
https://www.dcmsme.gov.in/schemes/clcs-tus/Approved%20MSME%20Competitive(LEAN)%20Scheme_Guidelines_07_10_2022.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID2099687®3&lang2
https://msme.gov.in/about-us/organization-setup#:~:textMission:,through%20skill%20and%20entrepreneurship%20development.
Ministry of Commerce and Industry
https://www.investindia.gov.in/blogs/msmes-backbone-indias-economic-future
Ministry of Statistics and Programme Implementation
https://www.mospi.gov.in/sites/default/files/publication_reports/Factsheet_with_infograph_A4.pdf
https://www.pib.gov.in/newsite/PrintRelease.aspx?relid78903®3&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID2205156®3&lang2
Ministry of Finance
https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf
https://www.indiabudget.gov.in/doc/budget_speech.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID2221434®3&lang1
https://www.indiabudget.gov.in/doc/bh1.pdf
https://www.indiabudget.gov.in/doc/eb/sbe68.pdf
Ministry of Commerce & Industry
https://www.pib.gov.in/PressReleasePage.aspx?PRID2117470®3&lang2
Ministry of Electronics & Information Technology
https://www.mygov.in/group/ministry-micro-small-and-medium-enterprises-msme//#:~:textMicro%2C%20Small%20and%20Medium%20Enterprises%20(MSME)%20sector%20has%20emerged,https://twitter.com/minmsme
President's Secretariat
https://www.pib.gov.in/PressReleasePage.aspx?PRID2219510®3&lang1
Reserve Bank of India
https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx?Id3138
https://www.rbi.org.in/commonman/english/scripts/FAQs.aspx?Id966
India Brand Equity Foundation
https://www.ibef.org/industry/msme
Others
https://ddnews.gov.in/en/union-budget-2026-27-puts-exports-at-core-of-growth-strategy/
PIB Archives
https://www.pib.gov.in/PressReleasePage.aspx?PRID2199330®3&lang2
English PDF
Disclaimer: Curated by HT Syndication.
