Budget 2026: Self-Reliant India Fund to get additional ₹2,000 crore to bolster MSMEs

Union Finance Minister Nirmala Sitharaman on Sunday declared that the Self-Reliant India Fund would receive an additional ₹2,000 crore in fiscal year 2026-27 to bolster micro, small, and medium enterprises (MSMEs).

Initially launched in 2023, this fund was designed to provide ₹50,000 crore in equity capital to MSMEs demonstrating the capacity and stability to scale into major corporations.

During the 2026-27 Union Budget presentation, the finance minister further introduced a comprehensive textile initiative featuring five specialized components. This strategy aims to revitalize a sector currently struggling under the weight of aggressive 50 percent tariffs implemented by the United States.

In her address, she outlined the Natural Fibre Scheme, the Textile Expansion and Employment Scheme, and a revamped National Handloom and Handicraft initiative.

Furthermore, the minister recommended transitioning TReDS into the mandatory transaction interface for every purchase made from MSMEs by central public sector entities. The TReDS entity — Receivables Exchange of India Ltd (RXIL) — is a collaborative venture established by SIDBI and the NSE.

Additionally, the minister emphasized that the administration remains committed to advancing infrastructure development across various Tier 2 and Tier 3 urban centers.

‘Corporate mitras’

To assist MSMEs, the government also plans to establish a dedicated group of "corporate mitras" throughout Tier-II and Tier-III locations.

The minister stated the government intends to form an 'Education to Employment and Enterprise' Standing Committee tasked with suggesting improvements specifically for the services industry. This specialized "corporate mitra" workforce will aid Micro, Small and Medium Enterprises in fulfilling their regulatory obligations at economical rates.

Furthermore, the state will coordinate with professional bodies like ICAI, ICSI, and ICMAI to create brief modular programs and functional toolkits to train this corporate mitra group, Sitharaman said.

Regarding agricultural updates, the minister mentioned that assistance would be extended to high-value produce including sandalwood and walnuts, alongside a coconut development project intended to boost output.

Additionally, the Centre will collaborate with state governments to revive the traditional sandalwood ecosystem, she concluded.

The annual budget made a fresh bet on India's manufacturing sector as it sought to accelerate and sustain strong economic growth, amid a volatile global environment, Sitharaman said.

The finance minister also proposed seven high-speed rail corridors, new dedicated freight corridors, and the operationalisation of 20 national waterways over the next five years as part of the Union Budget.

These corridors will act as growth connectors, cutting travel time, reducing emissions, and supporting regional development.