Union Budget 2026: Govt proposes to top up Self Reliant India Fund with Rs 4,000 crore in FY27 to support MSMEs

Union Budget 2026: Finance Minister Nirmala Sitharaman presented the Union Budget 2026 in Parliament on Sunday, where she proposed the development of a cadre of "corporate mitras" in Tier-II and Tier-III cities.

2 min readNew DelhiFeb 1, 2026 12:13 PM IST

Finance Minister Nirmala Sitharaman presents the Union Budget 2026 in the Parliament on Sunday. (Photo: Sansad TV)

Finance Minister Nirmala Sitharaman, presenting the Union Budget 2026 in Parliament on Sunday, proposed that the Self Reliance India Fund will be topped up with Rs 4,000 crore in FY27 to support Micro, Small, and Medium Enterprises (MSMEs).

The fund was introduced in 2023 to infuse Rs 50,000 crore in equity funding into MSMEs with the potential and viability to grow into large units.

The finance minister also proposed to make the Trade Receivables Discounting System (TReDS) as a transaction platform for all purchases from MSMEs by central public sector enterprises. TReDS is an electronic platform for facilitating the financing and discounting of trade receivables of MSMEs through multiple financiers.

The government will also develop a cadre of “corporate mitras” in Tier-II and Tier-III cities, helping the MSMEs to meet their compliance requirements at affordable costs, Sitharaman announced.

To develop the cadre of “corporate mitras,” the government will facilitate professional institutions such as ICAI, ICSI, ICMAI to design short-term modular courses and practical tools, Sitharaman added.

Sitharaman also proposed an integrated textile programme with five sub-parts — a move that could help the sector, facing challenges due to steep 50 per cent tariffs imposed by the United States.

In her Budget speech, she proposed the Natural Fibre Scheme, Textile Expansion and Employment Scheme, and the National Handloom and Handicraft programme, and said that the government will continue to develop infrastructure in Tier 2 and Tier 3 cities.