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MSMEs Push Pre-Budget Demands: Cheaper Credit, Tech Upgrades and SMA Relief, Seek Loan Moratorium Over US Tariff Hit

Their proposals will shape the Feb. 1, 2026 Budget as the government advances an export push with new funding and credit support.

Overview

  • At a pre-Budget meeting with Finance Minister Nirmala Sitharaman, MSME representatives called for easier and cheaper financing and an enhanced technology upgradation fund to lift productivity.
  • Industry bodies sought relaxation of Special Mention Account rules and a wider financier base, citing a SIDBI-estimated credit gap of about ₹30 lakh crore that constrains working capital.
  • Participants requested a loan moratorium for units hurt by US tariffs and flagged stress in labour‑intensive segments including textiles, gems and jewellery, and fisheries.
  • Suggestions included creating export hubs and more clusters and providing policy support to help smaller firms meet environmental standards without losing competitiveness.
  • The Union Cabinet approved an Export Promotion Mission with a ₹25,060 crore outlay over six years and allowed up to ₹20,000 crore in additional credit for exporters, separate from the consultations.