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Budget Boosts MSMEs with Rs 24,566 Crore & New Growth Fund, Says Manjhi

Union MSME Minister Jitan Ram Manjhi praised the development-oriented budget, highlighting a significant increase in financial allocation for the MSME sector. He emphasized key measures including a Rs 10,000 crore Growth Fund for equity support and a Rs 2,000 crore top-up to the SRI Fund. Major reforms like making TREDS mandatory for CPSEs and integrating it with GeM aim to resolve delayed payments and improve MSMEs' working capital. The budget also includes specific support for the Khadi and textile sectors to boost their growth and global integration.

Key Points: Union Budget 2024-25: Increased MSME Allocation & Key Reforms

  • MSME allocation up to Rs 24,566 cr
  • New Rs 10,000 cr Growth Fund for equity support
  • TREDS mandatory for CPSEs to speed payments
  • Rs 2,000 cr top-up for Self-Reliant India Fund
  • Khadi included under Gram Swaraj Mission
3 min read

Union Budget: Fund allocation increased for MSMEs, says Jitan Ram Manjhi

MSME Minister Jitan Ram Manjhi highlights a Rs 1,398 crore budget increase, a Rs 10,000 cr Growth Fund, and TREDS reforms for faster MSME payments.

"Under the visionary leadership of the Prime Minister, the MSME sector will once again emerge as a champion of economic growth. - Jitan Ram Manjhi"

Patna, Feb 1

Union MSME Minister Jitan Ram Manjhi on Sunday described the Union Budget as development-oriented and fully aligned with the vision of Viksit Bharat by 2047.

Congratulating Union Finance Minister Sirmala Sitharaman, Manjhi thanked her for presenting a budget that prioritises growth, employment, and entrepreneurship.

He also expressed gratitude to Prime Minister Narendra Modi, stating that the budget reflects the Prime Minister's visionary leadership towards building a developed India.

Highlighting increased financial support for the MSME sector, Manjhi said the budgetary allocation has risen from Rs 23,168 crore in FY 2025-26 to Rs 24,566 crore in FY 2026-27.

"Under the visionary leadership of the Prime Minister, the MSME sector will once again emerge as a champion of economic growth," he said.

The Union Minister emphasised that the budget places special focus on MSMEs.

Among the five major decisions announced to facilitate MSME growth, he described the Rs 10,000 crore equity support through the establishment of a Growth Fund as the most significant step for strengthening small and medium enterprises.

Manjhi also welcomed the Rs 2,000 crore top-up to the existing Self-Reliant India (SRI) Fund, aimed at scaling up micro-enterprises.

He said this reflects the strong performance of the scheme and the government's continued commitment to MSME expansion.

Referring to reforms in payment mechanisms, the Minister said the decision to make Trade Receivables Discounting System (TREDS) mandatory for all procurements by Central Public Sector Enterprises (CPSEs) will ensure greater transparency.

He added that introducing credit guarantees for TREDS transactions through CGTMSE will enable faster payments to MSMEs.

He further noted that integrating GeM (Government e-Marketplace) with TREDS will significantly reduce delays in public procurement payments and improve working capital availability for MSMEs.

"These reforms will help resolve the long-standing issue of delayed payments and strengthen the financial health of MSMEs," Manjhi said.

The Union Minister also highlighted support for professional institutions such as ICAI and ICMAI, which will be encouraged to develop modular courses to create corporate partners who can assist MSMEs in meeting procedural and compliance requirements.

Welcoming sector-specific announcements, Manjhi praised the decision to include Khadi under the Mahatma Gandhi Gram Swaraj Mission, along with provisions for technical assistance, skill development, and integration into global value chains.

He said these steps would significantly boost the Khadi sector.

He also welcomed the budget's announcements for the textile sector, noting that textiles form the largest segment within MSMEs and would directly benefit from the new provisions.

- IANS

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Reader Comments

P
Priya S
Good to see Khadi getting specific mention and support under the Gram Swaraj Mission. It's not just a fabric, it's a symbol of our self-reliance. Hope the skill development and global value chain integration helps our artisans get better prices and recognition worldwide. Jai Hind!
R
Rohit P
The increase in allocation is only about Rs. 1400 crore. With inflation, is this really a significant boost? While the intentions sound good, the actual fund increase seems modest. The success will depend on how efficiently these funds and schemes reach the actual small business owners in tier 2 and 3 cities.
S
Sarah B
As someone who follows global economic trends, focusing on MSMEs is smart policy. The Growth Fund of ₹10,000 crore for equity support could unlock a lot of potential if managed transparently. Integrating professional bodies like ICAI to help with compliance is a practical step often overlooked.
V
Vikram M
The textile sector getting a push is excellent news! It employs so many people, especially women, across the country. Faster payments and credit guarantees are what we need to compete with countries like Bangladesh and Vietnam. Hope the implementation is swift. #ViksitBharat
K
Karthik V
All these announcements sound good on paper. But the real test is at the bank manager's desk and the local government office. Will the loan process become easier? Will the 'corporate partners' from ICAI be affordable for a tiny workshop in Moradabad? The intent is right, but the devil is in the delivery.

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