In the Union Budget 2026-27, Union Finance Minister Nirmala Sitharaman has proposed Rs 4,000-crore for Self-Reliant India Fund to support micro, small, and medium enterprises (MSME).
In the Union Budget 2026-27, Union Finance Minister Nirmala Sitharaman on Sunday proposed Rs 4,000-crore for Self-Reliant India Fund to support micro, small, and medium enterprises (MSME). She specifically proposed Rs 2,000 crore for micro enterprises.
Initially, the fund was announced in 2023 to infuse Rs 50,000 crore in equity funding into MSMEs with the potential and viability to grow into large units. Sitharaman has now proposed to top up the fund with Rs 4,000 crore in 2026-27.
Sitharaman further proposed to introduce a dedicated Rs 10,000 crore SME Growth Fund to create “future champions” in the sector.
Sitharaman also proposed an integrated textile programme with five sub-parts, a move that could help the sector, which is facing challenges due to steep 50 per cent tariffs imposed by the US. Notably, the textile sector is the second-largest employer in India after agriculture.
Sitharaman proposed Natural Fibre Scheme, Textile Expansion and Employment Scheme, and National Handloom and Handicraft programme. She also proposed to make TReDS as transaction platforms for all purchases from MSMEs by central public sector enterprises.
The TReDS platform-Receivables Exchange of India Ltd (RXIL) is a joint venture promoted by SIDBI and NSE.
Sitharaman further said that the government will continue to develop infrastructure in Tier 2 and Tier 3 cities.
This is a developing story.
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