New Delhi, Feb 1 (NationPress) Finance Minister Nirmala Sitharaman unveiled a dedicated Rs 10,000 crore Growth Fund for SMEs (small and medium enterprises) aiming to cultivate future champions by incentivizing businesses based on specific criteria during the Budget 2026-27 proposals presented in Parliament on Sunday.

Additionally, she recommended augmenting the Self-Reliant India Fund, established in 2021, with Rs 2,000 crore to extend support to micro-enterprises and ensure their access to risk capital.

"The Government, led by Prime Minister Narendra Modi, has consistently opted for action over indecision, reform over mere talk, and prioritizing the people over populism," remarked the Finance Minister.

She emphasized that the Government is driven by three 'kartavyas' (duties), with the foremost being to accelerate and sustain economic growth by boosting productivity and competitiveness, while also enhancing resilience against fluctuating global dynamics.

Recognizing MSMEs as a crucial growth engine, the Finance Minister proposed a three-faceted approach to position them as "Champions under the first Kartavya," with the initial step being the establishment of the Rs 10,000 crore SME fund for equity support.

As part of the second approach focused on "liquidity support," she stated that over Rs 7 lakh crore has been made accessible to MSMEs through TReDS.

To maximize its potential, she proposed four initiatives, including designating TReDS as the transaction settlement platform for all purchases from MSMEs by CPSEs, creating a benchmark for other corporations, and introducing a credit guarantee support mechanism via CGTMSE for invoice discounting on the TReDS platform. Furthermore, linking GeM with TReDS for sharing insights with financiers regarding government purchases from MSMEs and introducing TReDS receivables as asset-backed securities to foster a secondary market, enhancing liquidity and transaction settlements, were among the other two measures.

Regarding the final approach of "professional support," Sitharaman indicated that the government will assist professional institutions like the Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI), and the Institute of Cost Accountants of India (ICMAI) to create short-term, modular courses and practical tools to cultivate a network of ‘Corporate Mitras’, particularly in Tier-II and Tier-III towns. These accredited para-professionals will aid MSMEs in fulfilling compliance requirements at affordable rates.