MSMEs Seek Tech Upgradation Fund In FY27 Budget For Improving Output

The MSME sector on Wednesday sought government support in terms of enhanced technology upgradation fund for various segments as part of pre-Budget suggestions to Finance Minister Nirmala Sitharaman.

During the meeting, micro, small and medium enterprises (MSMEs) also pitched for easier access to credit and help explore export markets for them, sources said.

The meeting aimed to seek inputs and suggestions for the Union Budget 2026-27, expected to be presented on February 1.

Representatives of Laghu Udhyog Bharti, Council for Leather Exports, Tiruppur Exporters and Manufacturers Association, India SME Forum, All-India Plastics Manufacturers' Association and Confederation of Women Entrepreneurs.

MSMEs are the backbone of the Indian economy, and they are the second biggest employer after agriculture. The sector, which employs 12 crore, contributes 30% to India's GDP, 45% to manufacturing output, and 40% to exports.

The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, the Secretary of the Department of Economic Affairs, and senior officials from both the Ministry of Finance and the Ministry of MSME.

This is the third in a series of pre-Budget consultations that the Ministry of Finance conducts annually before finalising the Budget.

Earlier this week, the Finance Minister had met with economists and leading representatives from the agriculture sector as part of the first and second rounds of discussions, respectively.

Sitharaman, who would present her ninth consecutive Budget, will present the Budget in the backdrop of geopolitical uncertainties and the steep US tariff of 50 per cent imposed on shipments from India.

The Budget for the next financial year will have to address issues of boosting demand, job creation and putting the economy on a sustained 8%-plus growth path. The government estimates the Indian economy to grow in the range of 6.3-6.8% during the current fiscal.