How is the Union Budget Supporting MSMEs, According to Jitan Ram Manjhi?
Synopsis
Union MSME Minister Jitan Ram Manjhi praised the Union Budget for its development focus, aligning with the vision of Viksit Bharat by 2047. He highlighted increased financial support for MSMEs and welcomed specific initiatives aimed at fostering growth and transparency in the sector. Discover the significant changes that may impact the future of small and medium enterprises.
Key Takeaways
Increased budget allocation for MSMEs.
Introduction of a Rs 10,000 crore Growth Fund.
Mandatory TREDS for CPSE procurements.
Enhanced support for the Khadi sector.
Support for professional institutions to assist MSMEs.
Patna, Feb 1 (NationPress) Union MSME Minister Jitan Ram Manjhi on Sunday labeled the Union Budget as development-driven and completely in line with the vision of Viksit Bharat by 2047.
Extending his congratulations to Union Finance Minister Sirmala Sitharaman, Manjhi expressed appreciation for a budget that emphasizes growth, employment, and entrepreneurship.
He also acknowledged Prime Minister Narendra Modi, noting that the budget showcases the Prime Minister’s visionary leadership toward establishing a developed India.
By underscoring the increased financial backing for the MSME sector, Manjhi mentioned that the budget allocation has escalated from Rs 23,168 crore in FY 2025–26 to Rs 24,566 crore in FY 2026–27.
“Under the insightful guidance of the Prime Minister, the MSME sector will rise again as a key driver of economic growth,” he stated.
The Union Minister pointed out that the budget specifically emphasizes support for MSMEs.
Among the five pivotal decisions made to aid MSME development, he identified the Rs 10,000 crore equity support through the formation of a Growth Fund as the most impactful measure for bolstering small and medium enterprises.
Manjhi also welcomed the Rs 2,000 crore addition to the existing Self-Reliant India (SRI) Fund, intended for scaling up micro-enterprises.
He noted that this reflects the robust performance of the scheme and the government’s consistent commitment to MSME growth.
Addressing reforms in payment methods, the Minister stated that mandating the Trade Receivables Discounting System (TREDS) for all procurements by Central Public Sector Enterprises (CPSEs) will ensure enhanced transparency.
He added that the introduction of credit guarantees for TREDS transactions via CGTMSE will facilitate quicker payments to MSMEs.
Furthermore, he highlighted that linking GeM (Government e-Marketplace) with TREDS will significantly minimize delays in public procurement payments and enhance working capital accessibility for MSMEs.
“These reforms will address the persistent issue of delayed payments and reinforce the financial stability of MSMEs,” said Manjhi.
The Union Minister also spotlighted support for professional institutions such as ICAI and ICMAI, which will be encouraged to create modular courses that can assist MSMEs in fulfilling procedural and compliance demands.
Appreciating sector-specific initiatives, Manjhi endorsed the decision to incorporate Khadi under the Mahatma Gandhi Gram Swaraj Mission, alongside provisions for technical assistance, skill development, and inclusion into global value chains.
He asserted that these measures would greatly enhance the Khadi sector.
He also welcomed the budget’s provisions for the textile sector, emphasizing that textiles comprise the largest segment within MSMEs and will directly benefit from the new initiatives.
Point of View
It is vital to recognize the Union Budget's commitment to MSMEs. This budget reflects a strategic approach toward economic development, emphasizing growth, employment, and entrepreneurship. The allocation increases and targeted reforms demonstrate a robust support system for small businesses, ultimately contributing to the nation's economic resilience.
NationPress
3 May 2026
Frequently Asked Questions
What is the main focus of the Union Budget for MSMEs?
The Union Budget emphasizes growth, employment, and entrepreneurship, with a significant increase in financial support for the MSME sector.
How much has the budget allocation for MSMEs increased?
The budget allocation for MSMEs has risen from Rs 23,168 crore in FY 2025–26 to Rs 24,566 crore in FY 2026–27.
What are some key initiatives announced for MSMEs?
Key initiatives include a Rs 10,000 crore Growth Fund, a Rs 2,000 crore top-up to the SRI Fund, and mandatory TREDS for CPSE procurements.
How will the budget benefit the Khadi sector?
The budget includes provisions for integrating Khadi into the Mahatma Gandhi Gram Swaraj Mission, enhancing technical assistance and skill development.
What role do professional institutions play in supporting MSMEs?
Professional institutions like ICAI and ICMAI will develop modular courses to assist MSMEs in meeting compliance and procedural needs.
