The general budget clearly reflects the free trade agreement with the European Union. Amid global tensions due to US tariffs, Finance Minister Nirmala Sitharaman presented the country’s general budget for the financial year 2026-27. The Finance Minister has laid special emphasis on the MSME sector, ensuring their access to the European market. In her budget speech, the Finance Minister described MSMEs as an important partner in the path of development.
“We want to develop them like champions,” she said. The Finance Minister also announced Rs 10,000 crore for the MSME sector, which will ensure direct benefits to entrepreneurs. The budget announcement will benefit both exporters and manufacturers. The budget has made a big announcement for the MSME sector, considered the economic backbone of the country. The sector has long been demanding that capital expenditure of manufacturing units should be reduced to increase both production and competitiveness.
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It will be made easier to bring small businesses into the mainstream.
The 2026 budget emphasizes manufacturing, exports and the “Atmanirbhar Bharat” campaign. There is also a focus on reviving old and defunct industrial units that were once a major source of employment and production. The government has allocated Rs 10,000 crore for projects aimed at promoting equity and inclusion in the MSME sector, which will help bring small enterprises into the mainstream.
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Mahatma Gandhi Handloom Scheme announced
The Finance Minister announced an additional allocation of Rs 2,000 crore under the Atmanirbhar Bharat initiative. Rs 7,000 crore has been allocated to revive old industrial areas and strengthen small industries. Moreover, the Mahatma Gandhi Handloom Scheme has been announced to promote handloom and traditional industries. The government claims that over 350 reforms will be implemented in the coming period, aimed at accelerating infrastructure, MSME and industrial development.
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New policies have also been proposed for bio-pharmaceuticals and emerging industries to create high-value manufacturing and new employment opportunities. A significant budget of ₹40,000 crore has been allocated to promote electronics manufacturing, which will place India at the forefront of global competitiveness in this sector. The MSME sector will drive economic growth and employment generation.