New Delhi, Jan 7 (NationPress) The PHD Chamber of Commerce and Industry (PHDCCI) has articulated its priorities for the Union Budget 2026–27, advocating for more accessible financing at reduced interest rates and a streamlined regulatory framework to alleviate costs for the MSME sector. This sector is pivotal in fostering growth and creating jobs within the economy.

According to a statement released by the PHDCCI, Micro, Medium and Small Enterprises (MSMEs) are crucial for propelling India's economy towards a remarkable 10 percent growth.

The contribution of the MSME sector to manufacturing, exports, and job creation in the nation has been on an upward trajectory. In 2025, this sector accounted for a noteworthy 30 percent of manufacturing output and has become the second-largest employer, following agriculture.

Since the launch of the Udyam Registration Portal and the Udyam Assist Platform (UAP) in July 2020, over 7.30 crore small and micro enterprises have registered, transitioning into the organized sector. This trend is vital for initiating targeted policies and structured schemes, as noted in the statement.

Ranjeet Mehta, CEO & Secretary General of PHDCCI, remarked, "Our proposals for the Union Budget 2026–27 comprise a holistic policy package designed to facilitate easier financing for growth, minimize regulatory challenges, and bolster institutional support for MSMEs."

The chamber has proposed the revival of an interest subvention scheme for MSMEs, offering a 2 percent interest subsidy on new and additional loans from banks and NBFCs, aimed at reducing the cost of credit and enhancing global competitiveness amid existing geopolitical uncertainties.

It has also pointed out that project costs have escalated since the inception of the Pradhan Mantri MUDRA Yojana in 2015, suggesting that loan limits under the scheme should be revised upwards.

To support MSME exporters facing increasing global tariff pressures, PHDCCI recommends the reinstatement of the Interest Equalisation Scheme for pre- and post-shipment export credit, extending eligibility to service exporters in addition to manufacturing exporters to enhance global price competitiveness.

Furthermore, the chamber emphasized the need for affordable financing options for MSMEs to accelerate growth. It suggests that equity from the Fund of Funds should be injected, particularly for startups to meet seed capital needs.

Under the MSME Development Act, 2006, only small businesses can seek assistance from Facilitation Councils regarding delayed payments. The chamber urges that medium-sized businesses should also be granted similar protections.

To expedite the adoption of modern, green, and sustainable technologies, it proposes an enhancement of the Credit-Linked Capital Subsidy Scheme with an increased investment ceiling of Rs 2 crore, as the current limit of Rs 1 crore no longer aligns with contemporary technology costs.

Additionally, the chamber has requested amendments to Section 44AB of the Income Tax Act to exempt all micro enterprises with a turnover of up to Rs 10 crore from mandatory tax audits, regardless of profit margins, which is anticipated to lower compliance costs estimated at Rs 75,000–Rs 1.5 lakh annually.