The Federation of Associations of Cottage and Small Industries (FACSI) has made a strong appeal to the central government. They want significant changes in the upcoming Union Budget 2026. Their focus is on easing the financial and regulatory burden for Micro and Small Enterprises (MSEs).
Key Demands for Micro and Small Businesses
FACSI presented several specific requests to help small businesses grow. The industry body believes these measures are crucial for economic recovery and job creation.
Formation of a Dedicated Council
One major demand involves creating a special council. FACSI wants this council to operate under the Ministry of MSME. Its sole purpose would be to address the unique challenges faced by micro and small enterprises. This council would streamline policy decisions and provide focused support.
Changes to the GST Framework
The federation has proposed two important modifications to the Goods and Services Tax system.
- Higher Exemption Threshold: They are asking for an increase in the GST exemption limit. This would allow more small businesses to operate without the complexity of GST registration and filing.
- Simplified Single Return: FACSI advocates for a single, easy-to-file GST return for qualifying small units. This move aims to reduce compliance costs and administrative headaches for entrepreneurs.
Easier Access to Credit
Alongside GST reforms, FACSI emphasized the need for relaxed credit norms. Many small businesses struggle to secure loans from traditional banks. The body wants the government to introduce policies that make credit more accessible and affordable for MSEs.
These recommendations come as the government prepares its budget plans for the fiscal year 2026-27. Small enterprises form the backbone of the Indian economy. FACSI argues that supporting them will boost overall growth and innovation.
The industry body plans to continue its dialogue with policymakers in the coming weeks. They hope to see their suggestions reflected in the final budget document.
