Budget 2026 Charts 3 Step Plan to Boost MSME Supply Chains

News: Union Budget 2026–27 positions MSMEs at the core of India’s supply-chain strategy, shifting from isolated schemes to structural reform.

It addresses three pillars: predictable cash flows, de-risked credit, and deeper supply-chain integration. With ₹8.1 lakh crore locked in receivables, improved financial systems and digital infrastructure aim to stabilise MSME payments.

Credit access is strengthened through expanded CGTMSE guarantees—raising the cover ceiling to ₹10 crore and lowering fees—encouraging portfolio-based lending.

The Budget also promotes localisation in high-growth sectors like electronics, EVs and semiconductors through duty cuts and higher outlays, while rare earth corridor development supports upstream capacity.

Compliance easing via Corporate Mitras further reduces barriers to scale. Together, these steps aim to deepen domestic value chains, strengthen exports and improve long-term trade resilience.