FACSI Seeks Tax, Credit And Regulatory Relief For MSEs In Budget 2026–27

New Delhi, Jan 14 (KNN) The Federation of Associations of Cottage and Small Industries (FACSI) has called on the Centre to introduce tax, credit, and regulatory relief measures for micro and small enterprises (MSEs) in the 2026–27 Union Budget to sustain growth and strengthen their role in the industrial ecosystem.

In a pre-budget letter to Finance Minister Nirmala Sitharaman, FACSI president H K Guha said the recommendations were developed after consultations with various entrepreneur associations and MSE groups across India.

Policy and Regulatory Recommendations
The federation urged the government to constitute an exclusive council for micro and small enterprises under the Ministry of MSME, raise the GST exemption threshold, and implement a single, simplified GST return for small units. 

It also recommended statutory collateral-free lending of up to Rs 1 crore at an interest rate of 6–7 percent, with interest subvention during periods of financial stress and automatic renewal of working capital limits for compliant units.

Liquidity and Export Support Measures
To address liquidity concerns, FACSI called for GST refunds within 15 days with statutory interest for delays and the complete decriminalisation of procedural lapses related to GST, labour, and local laws. 

For export-oriented units, the federation proposed the creation of an Export Risk Equalisation Fund to shield small exporters from sudden tariff hikes and suggested enhancing lending targets through SIDBI and public sector banks.

Operational and State-Level Recommendations
It recommended reducing fees for MSEs submitting tenders on the GeM portal. It also proposed strengthening State Facilitation Councils to expedite delayed payments.

Additionally, it suggested coordinating with state governments to extend subsidies on renewable energy, electricity charges, and local levies, and providing special support to units in state-run industrial estates. Guha emphasized that these initiatives would play a key role in promoting the growth of MSEs in India.

(KNN Bureau)