Ambedkar Chamber of Commerce and Industry Welcomes MSME and Inclusive Growth Focus in Union Budget 2026-27

NEW DELHI (India CSR) — The Union Budget 2026-27 has laid out a comprehensive framework to strengthen micro, small and medium enterprises (MSMEs) and promote inclusive entrepreneurship through targeted financial support, cluster-based development and ease-of-doing-business measures, Rusen Kumar, National President of the Ambedkar Chamber of Commerce and Industry, said on Saturday.

Reacting to the Budget presented by Finance Minister Nirmala Sitharaman, Ambedkar Chamber said the government’s focus on MSMEs reflects a growing recognition of their role as a key driver of employment generation, local value creation and social mobility.

Rusen Kumar welcomed the introduction of a Rs. 10,000 crore SME Growth Fund, stating that the initiative aims to create “Champion SMEs” capable of scaling up operations, adopting advanced technologies and competing in domestic as well as global markets.

“The SME Growth Fund announced in the Budget can help high-potential MSMEs transition into larger and globally competitive enterprises. This is particularly significant as MSMEs contribute nearly 30 per cent to India’s GDP and account for a major share of non-farm employment,” Rusen Kumar said.

Rusen Kumar also welcomed the allocation of an additional Rs. 2,000 crore to the Self-Reliant India Fund, noting that enhanced access to risk capital would benefit micro enterprises, start-ups and first-generation entrepreneurs, especially from socially and economically marginalised sections.

According to him the announcement to revive 200 legacy industrial clusters through infrastructure development and technology upgradation would directly support traditional MSME clusters that have been facing challenges related to outdated machinery, rising costs and limited market access.

“These clusters are regionally rooted and labour-intensive. Their revival will strengthen local economies and support inclusive employment,” Rusen Kumar said.

Highlighting sector-specific measures, Rusen Kumar said the Budget’s focus on textiles, khadi, handloom and handicrafts is critical for inclusive growth, as these sectors are dominated by MSMEs and provide livelihoods to millions of rural workers and women entrepreneurs.

Rusen Kumar referred to initiatives such as the National Fibre Scheme, Textile Expansion and Employment Scheme, and the Mahatma Gandhi Gram Swaraj initiative, which aim to modernise traditional clusters through capital support for machinery, technology upgradation, common testing and certification facilities, and improved access to global markets.

On institutional capacity-building, Rusen Kumar welcomed the proposal to develop a cadre of ‘Corporate Mitras’ through professional bodies such as ICAI, ICSI and ICMAI, particularly in Tier-II and Tier-III towns.

“This initiative will help MSMEs manage compliance, taxation and governance requirements more efficiently, addressing a long-standing constraint for small businesses,” he said.

Commenting on tax-related measures, Rusen Kumar said provisions such as simplified TDS rules for labour-intensive sectors, rationalisation of penalties, decriminalisation of certain compliance-related offences, and extended timelines for revising income tax returns would significantly reduce the compliance burden on MSMEs and encourage formalisation.

He also highlighted export-oriented measures, including the removal of the Rs. 10 lakh per consignment cap on courier exports, which he said would enable small businesses, artisans and start-ups to access international markets more easily through e-commerce platforms.

Summing up, Rusen Kumar said the Union Budget 2026-27 demonstrates a clear policy intent to place MSMEs, micro enterprises and first-generation entrepreneurs at the centre of India’s long-term economic growth strategy.

He added that effective implementation and timely execution at the ground level would be critical to ensuring that the benefits of the Budget reach intended beneficiaries and contribute to sustained and inclusive economic growth.