The Association of Indian Entrepreneurs (AIE), representing the micro, small, and medium enterprise sector, has said the Union Budget 2026–27 presented by Finance Minister Nirmala Sitharaman “lacks specific announcements” for MSMEs, leaving industry expectations unmet.In a statement, AIE National Chairman K E Raghunathan said that despite various allocations and incentives announced across sectors, the Budget did not include targeted measures that MSME industries had hoped for. He pointed out that demands for collateral-free loans and mechanisms to control raw material prices were not adequately addressed in practice, even though they were mentioned in the speech.
Raghunathan also expressed disappointment that the Budget did not establish an Emergency Relief Fund to help MSMEs cope with external shocks such as U.S. tariff impacts. He said the absence of such support measures undermines confidence among small and micro enterprises struggling with operational challenges.
According to him, the Budget’s failure to deliver specific relief for MSMEs could affect employment generation and the sector’s ability to grow, as many small businesses continue to face cost pressures and credit stress.