MSME sector seeks easier finance, tech support, more market access in pre-budget meeting with finance minister

Easier access to finance, delayed payments, and the need for better technology adoption, were some of the requirements of the micro, small and medium enterprises (MSME) sector that stakeholders raised before finance minister Nirmala Sitharaman at a pre-Budget meeting on Wednesday. Participants also emphasised measures to reduce compliance burdens and improve ease of doing business for small enterprises.

Finance minister Nirmala Sitharaman chaired the third pre-Budget consultation meeting, which was part of the ongoing exercise by the finance ministry to gather inputs for the upcoming Union budget 2026-27, which is scheduled to be presented in Parliament on 1 February.

Representatives from leading MSME associations and industry bodies shared their suggestions on policy measures needed to enhance growth and competitiveness across the sector. The meeting was also attended by minister of state for finance Pankaj Chaudhary, the secretary of the Department of Economic Affairs, and senior officials from both the ministry of finance and the ministry of MSME, the finance ministry said in a statement.

“Also, the industry has sought measures that improve market access to products so that the SME sector scales up exports. We are hoping for long-term measures from the government to strengthen this key segment of the economy,” said Vinod Kumar, president, India SME Forum.

The country’s MSME segment, which employs over 100 million people and contributes around 30% to GDP. In view of the sector's importance to the economy, the meeting focused on the themes of easier access to funds, some form of support for the sector to upgrade its technology, and further expansion of the digital payment infrastructure.

The meeting was the third in a series of pre-Budget consultations that the ministry of finance conducts annually before finalizing the Budget. Earlier this week, Nirmala Sitharaman had met with leading representatives from the agriculture and economic policy sectors as part of the first and second rounds of discussions.

The consultations enable the finance ministry to obtain specific inputs from various key economic segments, thereby making the budget-making process more comprehensive and policy-making more focused on addressing the concerns of all economic segments. The meeting helps the government shape its fiscal strategy for FY27.

The MSME sector has consistently been a focus area in recent Budgets, with several policy measures introduced to boost its resilience. Initiatives such as the Emergency Credit Line Guarantee Scheme (ECLGS), Production Linked Incentive (PLI) schemes, and the ‘Raising and Accelerating MSME Performance’ (RAMP) programme have aimed to strengthen the ecosystem for small and medium enterprises.

The finance minister’s pre-budget schedule typically covers a broad range of stakeholders, farmer associations and agricultural economists, trade unions, the education and health sectors, employment and skilling bodies, MSMEs, trade and services groups, industry representatives, the financial sector and capital markets, infrastructure, energy, and urban sector players.

The Union Budget for 2025-26, presented in February, outlined a roadmap for inclusive and resilient growth amid a world unsettled by rising trade tariffs, supply chain realignments, and geopolitical tensions.

It sought to balance welfare and reform, prioritizing agriculture, MSMEs, and rural prosperity, while invigorating private enterprise through higher capital expenditure, innovation incentives, and selective tax relief aimed at lifting consumption.