Budget 202627: AIAI Seeks Targeted Interventions To Ease Stress On Msmes

(MENAFN- KNN India) New Delhi, Jan 5 (KNN) The All India Association of Industries (AIAI) have urged the government to introduce focused, time-bound interventions for micro and small enterprises in the Union Budget 2026–27, citing sustained stress on the segment due to policy asymmetries, rising compliance costs and repeated external economic disruptions.

In a policy memorandum submitted to the Union Finance Ministry, the two industry bodies called for budget-backed measures aimed at safeguarding employment, preserving domestic manufacturing capacity and strengthening export competitiveness through the MSME sector.

Credit Access and Structural Challenges

Dr. Vijay Kalantri, President, AIAI said,“MSMEs are not struggling due to inefficiency but due to structural disadvantages including high cost of credit, delayed payments, and disproportionate compliance burden”.

Highlighting access to credit as the most pressing challenge, Dr. Kalantri proposed the creation of a national, real-time credit evaluation framework linked to the Goods and Services Tax Network (GSTN).

“This will build a real-time credit infrastructure where payment behaviour and verified cash-flow drives access, rather than credit appraisal on backwards-looking balance sheets. This reform will not cost a single paisa to the government but at the same time has potential to solve the credit crisis,” he said.

Export Growth and Market Diversification

Dr. Kalantri noted,“The past year has seen many geoeconomic upheavals which have adversely impacted MSMEs.”

He called on the government to place greater emphasis on opening newer export markets through trade agreements and policies that promote cross-border commerce, enabling MSMEs to better integrate into global supply chains.

Pre-Shipment Financing and Export Enablement

“The government should also draw up a policy outline for pre-shipment financing to support MSMEs from gate to port. This whole-of-government approach will strengthen the export capabilities of MSMEs, thereby supporting job creation and inclusive growth,” Dr. Kalantri suggested.

He further suggested that budgeted support for MSME e-commerce onboarding, logistics integration, and export documentation would enable smaller firms to participate more effectively in domestic and global value chains, thereby ensuring that economic growth percolates to the grassroots level.

(KNN Bureau)

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