Overview
- The MSME-focused consultation in New Delhi on Nov. 12 included MoS Finance Pankaj Chaudhary, the Department of Economic Affairs leadership, and senior MSME ministry officials.
- The session followed Nov. 10 meetings where leading economists and agriculture representatives offered inputs for Union Budget 2026-27.
- Economists urged sustained public capital expenditure, a stronger manufacturing push that supports MSMEs and jobs, and greater investment in R&D and digital infrastructure while preserving fiscal prudence.
- Participants recommended steps such as import-substitution measures within the PLI framework, streamlined customs processes, and tax and administrative reforms to crowd in private investment.
- Officials are weighing domestic demand support from recent GST changes and income-tax relief against external headwinds including higher U.S. tariffs and softer multilateral growth estimates for 2026-27.