This post was originally published on The Economic Times
Micro, small, and medium enterprises (MSMEs) and manufacturing remain central to India’s growth strategy, contributing nearly 30% to the country’s gross domestic product (GDP) and over 45% to merchandise exports. Over the past decade, reforms in ease of doing business, digital public infrastructure, and credit delivery have supported higher formalisation and market access. Initiatives aimed at simplifying compliance, expanding digital payments, and strengthening credit flows have helped enterprises integrate more effectively into domestic and global value chains.
However, regulatory complexity, compliance costs, delayed payments, and uneven state-level implementation continue to constrain investment and scale, particularly for micro and small enterprises. Manufacturing faces persistent challenges related to logistics efficiency, cost competitiveness, and access to long-term finance. Against this backdrop, the Union Budget 2026-27 assumes critical importance in translating reform intent into execution-led growth for MSMEs and manufacturing.
Industry demands
Ahead of the Union Budget 2026-27, experts and industry stakeholders underscored the need to strengthen asset monetisation through a single-point approval mechanism, ensure greater regulatory predictability, and improve transparent, fair-value disclosures to attract long-term private capital. It was emphasised that getting more state involvement in national infrastructure and monetisation pipelines through
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