The Union Budget 2026-27 has garnered largely positive reactions from Pune's industrial and business community, with leaders welcoming substantial equity support for micro, small, and medium enterprises (MSMEs) while emphasizing the need for enhanced focus on artificial intelligence diffusion and export promotion.
Major Equity Infusion for MSME Growth
Finance Minister Nirmala Sitharaman announced the creation of a Rs 10,000 crore SME Growth Fund aimed at developing MSMEs as 'champions.' This fund will provide fresh impetus to MSMEs based on select performance and growth criteria, with the objective of scaling up high-potential firms.
Additionally, the Self-Reliant India Fund, initiated in 2021, will receive a top-up of Rs 2,000 crore to continue providing risk capital support to micro enterprises and ensure sustained access to equity financing.
TReDS Platform Mandate and Credit Guarantee Scheme
Sitharaman revealed that the government has already made more than Rs 7 lakh crore available through the Trade Receivables Discounting System (TReDS). New measures will mandate TReDS as the one-step platform for MSME purchases by central public sector enterprises.
The budget also introduced a credit guarantee scheme support that would link the Government e-Marketplace (GeM) with TReDS for faster financing.
Industry Leaders' Reactions
Prashant Girbane, director general of MCCIA, described the budget as "foresighted, with no shocks, has growth prospects, and represents a declining fiscal deficit." He welcomed the enhanced use of TReDS for delayed payments and increased equity support through CGTMSE.
However, Girbane outlined key demands: "The TReDS platform should have been linked with the GSTN portal so that every invoice can compulsorily be trade discounted. And the Centre must do more on AI diffusion among MSMEs."
He further advocated for deploying "economy ambassadors from the private industry abroad" to help Indian MSMEs promote exports and international marketing, similar to practices in the United Kingdom, Japan, South Korea, and Taiwan.
Landmark Initiative for Small-Scale Manufacturers
HP Srivastava, chairman of Deccan Chamber of Commerce, Industries, and Agriculture, Pune, called the Rs 10,000 crore MSME Growth Fund a "landmark equity infusion that will empower our small-scale manufacturers to scale up their operations without the burden of traditional debt."
Srivastava also noted that allowing manufacturing units in Special Economic Zones (SEZs) to sell goods in the Domestic Tariff Area (DTA) at concessional duty rates as a one-time measure would help them overcome current global market challenges.
Support for Corporate Mitras and EV Sector
Sitharaman announced that professional bodies like ICAI, ICMAI, and ICSI will be encouraged to design short-term, modular courses to train a cadre of 'Corporate Mitras', particularly in Tier-II and Tier-III towns. These professionals will assist MSMEs in meeting compliance requirements at affordable costs, reducing operational burdens.
Dr Prashant Khankhoje, strategic energy advisor at MCCIA, highlighted benefits for the electric vehicle sector: "Exemption of basic customs duty on capital goods used for manufacturing lithium-ion batteries, along with extension of concessional duty benefits for lithium-ion cells and their parts, will reduce the cost of EV vehicles and batteries."
He added that exemption of basic customs duty on import of sodium antimonate, essential for manufacturing solar panel glass, will boost the solar cell manufacturing industry. However, Khankhoje emphasized the need for "consistent policies for at least five years" to ensure successful implementation.
Opportunities for Startups and SMEs
Dr V Premnath, director of Venture Centre, Pune, noted that the budget's focus on scaling up manufacturing in biopharma, semiconductors, electronic components, chemicals, and sustainable textiles will create numerous opportunities for startups and SMEs in these sectors.
"The proposed Equity Support and Liquidity Support for MSMEs will allow MSMEs to invest more and take larger risks," Premnath stated.
He also welcomed initiatives for the orange economy, saying: "It is great to see that the GoI plans to develop and grow the 'create enterprises and industry' via the initiatives for the orange economy given the tremendous economic potential of the entertainment sector and to strengthen the 'soft power' of India."
