Trade bodies say Budget powers MSMEs, provides boost to domestic manufacturing and further simplifies doing business

Union Budget 2026-27 empowers MSMEs, enhances manufacturing, and simplifies business operations for sustainable growth and competitiveness.

Trade bodies said the Union Budget 2026-27 reflected a holistic development vision and therefore would give an overall fillip to Micro, Small, and Medium Enterprises (MSMEs) in the State.

The Karnataka Small Scale Industries’ Association (KASSIA) said, “The Budget laid emphasis on strengthening domestic manufacturing, scaling MSMEs, and bolstering infrastructure.”

B.R. Ganesh Rao, president, KASSIA said, “The key announcements such as the ₹10,000 crore SME Growth Fund, the top-up of ₹4,000 crore to the Self-Reliance India Fund, and support measures integrated for traditional sectors were expected to provide critical impetus to the micro and small enterprises across the country.”

“These measures aim to not only enhance capital access but also nurture competitive, export-oriented, and tech-enabled small businesses, which form the backbone of India’s industrial ecosystem,” he said.

“Overall, the Budget strikes a fine balance between growth, reforms, and inclusion, and provides a strong foundation to accelerate India’s journey towards a Viksit Bharat,” Mr. Rao said.

According to the Federation of Karnataka Chambers of Commerce & Industry (FKCCI), the Union Budget 2026-27 offers forward-looking and action-oriented proposals that reinforce India’s growth momentum while maintaining fiscal discipline.