Budget 2026-27 should boost digital economy, MSMEs in Tier-2 and Tier-3 cities: Experts
Bengaluru, Jan 21
With less than two weeks to go for the Union Budget 2026-27, experts from different sectors are sharing their expectations, stressing the need to sustain economic growth while creating large-scale employment opportunities.
Speaking to IANS, Karnataka Digital Economy Mission CEO Sanjeev Kumar Gupta said the upcoming budget should strongly focus on faster adoption of technology by micro, small and medium enterprises (MSMEs).
Gupta said MSMEs, especially those operating in Tier-2 and Tier-3 cities, currently contribute around $1.5 trillion to India's economy and are growing at a rate of nearly 10 per cent.
"If technology adoption is encouraged in a structured manner, this growth rate could rise to as much as 18 per cent," he stated.
"For this to happen, a clear and supportive policy framework is required, and he expects the central government to announce such measures in the upcoming budget," Gupta explained.
He further pointed out the need to create digital economy zones in Tier-2 and Tier-3 cities across the country.
"This move could help develop nearly 100 new growth engines, boosting regional development and reducing pressure on major metros," Gupta explained.
Sharing another key expectation from the budget, Gupta said that there are currently around one lakh startups operating in Tier-2 and Tier-3 cities.
He suggested that a dedicated scheme should be introduced to scale this number up to five lakh startups, which would significantly increase employment opportunities across the country.
The Union Budget will be presented by the Finance Minister Nirmala Sitharaman on February 1 at 11 am.
This will be the first time since 2000 that the Union Budget is presented in Parliament on a Sunday.
Earlier, the 2025 budget was presented on a Saturday, while the 2015 budget under the late Arun Jaitley was also presented on a Saturday.
— IANS
Reader Comments
Boosting MSMEs outside metros is crucial for balanced development. Bengaluru and Delhi are saturated. Creating 100 new growth engines can stop the migration of youth to big cities for jobs. Let's empower our smaller towns!
Good points, but execution is key. Previous schemes for MSMEs often get stuck in red tape. The budget must simplify processes and ensure benefits actually reach the ground level in cities like Indore or Coimbatore. Less talk, more action please.
The focus on scaling startups from 1 lakh to 5 lakh is ambitious! But alongside funding, they need mentorship and market access. Hope the budget includes provisions for connecting these startups with larger Indian corporates for sustainable growth.
Digital economy zones sound promising. But what about reliable electricity and internet in these areas? Infrastructure must be the first step. You can't run a digital business with 3G speeds and daily power cuts. Budget should address this foundation.
As someone from a Tier-3 city, this gives me hope! If implemented well, it can create local job opportunities and reduce the pressure on families when young people move away. The 18% growth potential is exciting. Jai Hind! 🇮🇳
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