The Economic Survey 2025–26 positions MSMEs as a key driver of India’s economic momentum, contributing approximately 31% to GDP, 35% to manufacturing output, and nearly 49% to total exports. While credit flow to the sector remains steady, high borrowing costs and nearly ₹8.1 lakh crore locked in delayed payments continue to strain working capital. Informal and micro enterprises are seeing better access to finance, though Insolvency and Bankruptcy Code (IBC) mechanisms remain underutilised due to procedural complexity. MSMEs are also playing an increasingly important role in domestic supply chains and export competitiveness.
What MSMEs now expect from Budget 2026:
Action on delayed payments
Cheaper & easier credit
Simpler compliance + faster dispute resolution
Boost to manufacturing clusters & exports
Stay tuned — We will closely track the Union Budget and share a clear breakdown of MSME-specific announcements as they are introduced.
🔗 Reference: Economic Survey 2025-26