“The Union Budget 2026–27 offers incremental calibration rather than structural relief for India’s SME sector. The headline ₹10,000-crore SME Growth Fund marks a policy shift toward equity and scale-oriented financing, but its reach is inherently limited. It will benefit a narrow cohort of formal, growth-ready firms, while the vast majority of micro and small enterprises—still grappling with thin margins, volatile demand, and delayed payments—remain largely untouched.
Liquidity reforms around TReDS are directionally sound, yet experience suggests platforms alone cannot correct entrenched power asymmetries between large buyers and small suppliers. Without strict enforcement of payment discipline, working-capital stress will persist. Importantly, the budget underplays demand-side constraints, tax complexity, and compliance friction—factors that matter more than capital availability in the post-Covid landscape.
In essence, this is a selective growth budget, not a broad-based SME revival plan. It advances long-term formalisation, but does little to alter the immediate ground reality for most SMEs.”
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