MSMEs Pin Hopes on Budget 2026 for GST Reforms and Enhanced Credit Access
NeoInsights study shows 86% of MSMEs expect business growth in 2026 through GST reforms and Budget 2026 support. Survey of 2,000+ MSMEs across 25 cities reveals 80% experienced recent business improvement, with 71% planning expansion. Key expectations include easier working capital access, digital capacity building, and continued government support across logistics, jewellery, beauty, and fintech sectors.
*this image is generated using AI for illustrative purposes only.
India's micro, small and medium enterprises are placing significant expectations on the upcoming Union Budget 2026, with a strong focus on GST reforms and enhanced operational support. According to the 10th NeoInsights report released by SME-focused NBFC NeoGrowth, an overwhelming 86% of MSMEs anticipate business growth in 2026, contingent on effective GST reforms and policy measures that ensure operational ease and continuity.
Strong Business Sentiment Drives Expansion Plans
The comprehensive study, encompassing over 2,000 MSMEs from 25 cities across India, reveals robust business confidence in the sector. Key findings demonstrate the sector's optimistic outlook and expansion intentions:
| Business Indicator | Percentage | Details |
|---|---|---|
| Recent Business Improvement | 80% | MSMEs reporting improvement in recent months |
| Physical Expansion Plans | 71% | Planning to expand shops or open new outlets |
| Product Diversification | 30% | Intending to add more products or brands |
| Loan Intentions | 50% | Planning to take business loans for expansion |
Consumer-facing MSMEs have experienced particularly visible demand improvements, with businesses in the auto, beauty, food and beverage, and wellness sectors recording the most significant gains.
Budget 2026 Expectations: Policy Support and Operational Ease
MSMEs are prioritizing three critical areas for Budget 2026 support: easier access to working capital, continued government backing, and digital capacity building. Approximately 25% of surveyed MSMEs emphasized the importance of faster and improved access to government schemes, alongside continued simplification of GST and compliance processes. The sector recognizes digital tools and online payments as crucial drivers for improving efficiency, transparency, and customer reach.
Sector-Specific Policy Recommendations
Logistics and Packaging Industry
Suresh Bansal, Founder & CEO of DCGpac and Board Member of DTDC, advocates for comprehensive policy support focusing on sustainable manufacturing and technology-led supply chains. His recommendations include:
- Incentives for recyclable and eco-friendly packaging
- GST structure rationalization on sustainable materials
- Acceleration of circular economy models adoption
- Enhanced credit access and faster GST refunds for improved liquidity
Gems and Jewellery Sector
Dishi Somani, Founder of Dishis Designer Jewellery, has outlined specific expectations for India's handcrafted and design-led jewellery sector:
| Policy Area | Expectation |
|---|---|
| GST Rationalization | Reduced rates on handcrafted jewellery |
| Compliance | Improved clarity on regulatory norms |
| MSME Support | Enhanced budgetary allocation for women-led enterprises |
| Credit Access | Simplified lending processes and export incentives |
Beauty and Wellness Industry
Ankit Virmani, Director of Esskay Beauty Resources, emphasizes addressing affordability challenges and structural growth impediments. Key concerns include volatile forex rates driving up input costs and the need for sector formalization through Skill Council certifications linked to MSME incentives.
Digital Infrastructure and Fintech Integration
The fintech sector's perspective, represented by industry leaders, highlights the critical need for regulatory clarity and digital infrastructure strengthening. Kunal Jhunjhunwala, Founder and CEO of airpay, stresses the importance of clear cross-border payment regulations for international trade expansion. Meanwhile, Rajat Deshpande, CEO & Co-Founder of FinBox, points out that effective credit access requires not just availability but also speed, predictability, and process simplification.
Looking Ahead: Implementation and Impact
The study underscores MSMEs' focus on stability, measured expansion, and resilience building. With half of the surveyed businesses planning to secure loans for expansion and the majority preparing for physical growth, the sector's expectations from Budget 2026 center on creating an enabling environment that supports sustainable growth while maintaining operational efficiency and compliance simplification.
15
