Budget 2026 Strengthens MSME Liquidity and Women-Led Enterprises

The Union Budget 2026 signals a targeted push to strengthen India’s MSME ecosystem by improving access to capital, easing liquidity constraints, and supporting scale-ready growth, with a strong focus on women-led enterprises. At a time when MSMEs continue to navigate cost pressures and global uncertainty, the budget prioritises structural reforms that address long-standing operational challenges.

One of the key announcements is the strengthening of the Trade Receivables Discounting System (TReDS) as a pricing benchmark and settlement platform, aimed at improving working capital availability and shortening payment cycles for small businesses operating within large supply chains. Simplified tax deducted at source (TDS) norms for manpower supply are also expected to reduce compliance friction and improve cash flow predictability for labour-intensive enterprises.

Commenting on the announcements, MD & CEO of Godrej Capital said, “Budget 2026 is a progressive step for MSMEs and manufacturing. By strengthening TReDS as a pricing benchmark and settlement platform, the government has directly addressed a long-standing working capital challenge for small businesses. The MSME Growth Fund and the enhanced Self Reliant India Fund further improve access to capital and growth opportunities.

At the same time, measures like the National Fibre Scheme and the textile expansion plan modernise key value chains and position India’s traditional industries for long-term success. Initiatives such as She-Marts to empower women entrepreneurs put women-led enterprises at the centre of India’s growth story, signalling a shift toward inclusive entrepreneurship that delivers both dignity and economic participation at scale.

Overall, the budget deepens liquidity, strengthens institutions, and supports sustainable, long-term growth.”

The budget comes as the Indian economy continues to show resilience despite global trade disruptions.