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MSMEs Seek Better Credit, Deregulation in Budget: UCCI Chief Hopeful

Prabodh Mohanty, President of the Utkal Chamber of Commerce and Industry, has expressed optimism for stronger MSME support in the upcoming Union Budget. He highlighted the need for better credit facilities without collateral and schemes to help MSMEs modernize and compete globally. Mohanty also called for the rationalization of mining laws and proactive deregulation of sectors, especially MSMEs. This comes ahead of the Budget presentation, with the Economic Survey projecting resilient growth for India's economy.

Key Points: UCCI Chief on Budget: Hopes for MSME Credit, Deregulation

  • Expects better MSME schemes
  • Calls for credit without collateral
  • Urges rationalisation of mining laws
  • Advocates for sector deregulation
2 min read

"Would expect better facilities, schemes for MSMEs": UCCI chief on Union Budget

UCCI President Prabodh Mohanty expects better facilities, collateral-free credit, and deregulation for MSMEs in the Union Budget 2026-27.

"I would expect better facilities and better schemes for MSMEs to scale up, modernise and grow - Prabodh Mohanty"

Bhubaneswar, January 31

Prabodh Mohanty, President of the Utkal Chamber of Commerce and Industry, has expressed optimism about stronger support for the MSME sector in the upcoming Union Budget.

Speaking to ANI on Friday, Mohanty said he is hopeful for improved facilities and new schemes to help MSMEs scale up, modernise, and remain competitive in the global market and stressed the need for easier access to credit without collateral as a key priority.

He also called for rationalisation of mining laws and taxes and urged the Centre to take proactive steps to deregulate sectors, particularly MSMEs.

"I would expect better facilities and better schemes for MSMEs to scale up, modernise and grow and be competitive in this global order... A better credit facility without collateral is one aspect that will emphasise... We expect some rationalisation of the mining laws and taxes... We also expect the Government of India to take proactive measures to deregulate all sectors, especially the MSME sector, and to exempt the MSMEs from these approvals and clearances, with a validity of at least three to five years," Prabodh Mohanty told ANI.

Meanwhile, ahead of the Union Budget 2026-27, set to be presented by Finance Minister Nirmala Sitharaman on Sunday, the Centre released the economic survey for the year 2025-26, where India's economic growth remains resilient with strong domestic demand acting as the main anchor, even as the global environment continues to remain fragile.

Taking an optimistic view of the economy, the Economic Survey estimated India's potential growth at around 7 per cent. It also projected that India's GDP growth in FY27 is likely to remain in the range of 6.8 per cent to 7.2 per cent, reflecting the economy's medium-term strength supported by reforms and macroeconomic stability.

The Survey noted that while global economic conditions remain uncertain and fragile, India's overall outlook continues to be positive. It highlighted that India's growth is holding up better than expected compared to many other economies, although risks remain elevated due to global uncertainties.

This year, the Budget presentation falls on a weekend. FM Sitharaman is set to present a record ninth consecutive Union Budget on February 1, marking a significant milestone in India's parliamentary and economic history.

- ANI

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Reader Comments

R
Rohit P
Deregulation is the key! The amount of time we waste running from one office to another for renewals and clearances is insane. A 3-5 year validity for approvals would be a game-changer for productivity. Let MSMEs focus on business, not bureaucracy.
A
Arjun K
The Economic Survey's 7% growth projection is encouraging, but this growth must be inclusive. MSMEs are the backbone of employment in India. Without strong support for them to modernize, this growth story will remain incomplete. Fingers crossed for Sunday!
M
Michael C
While the optimism is good, I hope the budget also addresses the digital divide. Many small businesses in tier-2 and tier-3 cities struggle with adopting new tech due to cost and knowledge gaps. Schemes are great, but implementation and accessibility are crucial.
S
Shreya B
Rationalising mining laws is a big one for states like Odisha. It can unlock so much potential for downstream MSMEs in manufacturing. Hope the budget has a clear roadmap for this and not just announcements. Jai Hind!
K
Karthik V
Credit without collateral sounds like a dream. But banks will need guarantees. Maybe the budget can strengthen the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme further? That could be a practical solution.

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