Budget 2026–27: FM Announces Rs 10,000 Crore Fund To Create 'Champion SMEs'

New Delhi, Feb 1 (KNN) Finance Minister Nirmala Sitharaman on Sunday unveiled a comprehensive set of initiatives for the Micro, Small and Medium Enterprises (MSMEs) sector while presenting the Union Budget 2026-27 in Lok Sabha.

The aim of the initiatives is to create 'champion SMEs' and supporting micro enterprises. The finance minister recognised 'MSMEs as a vital engine of growth' and proposed equity support for the Small and Medium Enterprises (SMEs).

As part of the equity support, the minister introduced a dedicated Rs 10,000 crore SME Growth Fund to incentivise the enterprises on select criteria, and create future Champions.

She also proposed to top up the Self Reliant India Fund with Rs 2000 crore for continued support to micro enterprises and maintain their access to risk capital.

Commenting on the proposed SME Growth Fund in the Budget, Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India said that the allocation of Rs 10,000 crore to the SME Growth Fund will boost small and medium enterprises, making them the most preferred alternative to large MNC offshore institutions and making India a self-reliant economy in the coming years.

"This could also enhance the AIF ecosystem for investments in this segment," he said.

Commenting on various initiatives announced in the Budget for MSMEs, Federation of Indian Micro and Small & Medium Enterprises (FISME), Vice President, Rakesh Chhabra said, "While we are still gaining more clarity on the fine print, we heartedly appreciate the mandatory TReDS announcement and the revival of 200 infra clusters. These, alongside the immense opportunities in agricultural processing and packaging, particularly for coconut and other high-value crops, and the strategic focus on the local economy through tourism, provide a robust foundation for Indian MSMEs to truly perform as global 'Champions'."

(KNN Bureau)