Business chamber PHDCCI has outlined its wishlist for Union Budget 2026–27, emphasizing the need for easier access to finance at lower interest rates and a reduction in regulatory burdens for the MSME sector. This sector plays a crucial role in driving growth and employment in India’s economy, with Micro, Medium, and Small Enterprises (MSMEs) seen as key to achieving a 10% growth trajectory.
The MSME sector has demonstrated a rising contribution to manufacturing, exports, and employment generation, accounting for 30% of manufacturing output in 2025 and standing as the second-largest employer after agriculture. Over 7.30 crore small and micro enterprises have registered on the Udyam Registration Portal and Udyam Assist Platform (UAP) between July 2020 and December 2025, transitioning them into the organized sector.
PHDCCI’s wishlist includes proposals for easy finance access, reduced regulatory burdens, and enhanced institutional support for MSMEs in the upcoming budget. The chamber advocates for the reintroduction of an interest subvention scheme offering a 2% interest subsidy on new and incremental loans to MSMEs, aiming to boost global competitiveness amidst geopolitical uncertainties.
The business chamber also calls for revisions to loan limits under the Pradhan Mantri MUDRA Yojana, reintroduction of the Interest Equalisation Scheme for MSME exporters, and infusion of equity from the Fund of Funds to provide cheaper financing options, particularly for startups. Additionally, PHDCCI highlights the need to extend Facilitation Council support to medium-sized businesses under the MSME Development Act, 2006.
To accelerate the adoption of modern technologies, PHDCCI suggests enhancing the Credit-Linked Capital Subsidy Scheme with an increased investment ceiling of Rs 2 crore. Furthermore, the chamber proposes amendments to exempt micro enterprises with turnovers up to Rs 10 crore from mandatory tax audits under Section 44AB of the Income Tax Act, aiming to reduce compliance costs significantly.
