FISME Hails Mandatory TReDS for CPSEs and Removal of E-commerce Export Caps as Landmark Reforms for 'MSME Champions'

New Delhi, Feb 1 (KNN) The Federation of Indian Micro and Small & Medium Enterprises (FISME) has welcomed the Union Budget 2026-27, specifically applauding the landmark decision to mandate the Trade Receivables Discounting System (TReDS) as the transaction settlement platform for all MSME purchases by Central Public Sector Enterprises (CPSEs).

This move, which serves as a national benchmark for corporate payment discipline, directly addresses the perennial issue of delayed payments that often leads to acute cash flow crises for small suppliers. To further bolster this liquidity window, the budget introduces a credit guarantee support mechanism through CGTMSE for invoice discounting on TReDS and integrates the Government e-Marketplace (GeM) with the platform to ensure cheaper and quicker financing.

Reacting to the Budget, FISME President, Sandeep Kishore Jain stated:
"The essence is in the fine print and we will be analyzing the specific allocations for various schemes. However, one main benefit for MSMEs announced by the Finance Minister in her Budget Speech is making TReDS mandatory for purchases made by Central PSEs. This is a significant victory for the sector that will directly address the perennial issue of delayed payments and unlock much-needed liquidity."

The export landscape for MSMEs is also set for a revolution with the removal of the current Rs 10 lakh value cap per consignment on courier exports. FISME views this as a game-changer for the "Orange Economy," as it allows small artisans and manufacturers to sell high-value products globally via digital platforms with significantly reduced friction.

Complementing this is the introduction of electronic sealing for export cargo, providing through-clearance from factory premises directly to the ship, which will drastically lower logistics costs and turnaround times for e-commerce exporters.

In addition to trade and liquidity reforms, the budget addresses the critical need for growth capital by establishing a dedicated Rs 10,000 crore SME Growth Fund and providing a Rs 2,000 crore top-up to the Self-Reliant India (SRI) Fund, 2021.

These equity support measures align with FISME's long-standing advocacy for MSMEs to build capital to scale without being solely dependent on traditional collateral-based debt. Furthermore, the budget acknowledges the compliance burden on small businesses by facilitating professional institutions to develop 'Corporate Mitras', specifically in Tier-II and Tier-III towns.

These entities will provide affordable professional assistance to help MSMEs meet complex regulatory requirements, combined with trust-based governance measures like the decriminalization of non-production of books and certain TDS payment delays.

(KNN Bureau)