Quick Summary
Industry bodies World Trade Centre (WTC) Mumbai and the All India Association of Industries (AIAI) have urged the government to announce targeted and time-bound measures for micro and small enterprises in the Union Budget 2026-27, warning that persistent credit stress and export constraints could er
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FAQ :
Industry bodies are urging the government to announce targeted and time-bound measures to provide credit relief for micro and small enterprises (MSMEs).
MSMEs are experiencing persistent credit stress, high borrowing costs, delayed receivables, rising compliance expenses, and export constraints, which are intensified by global economic disruptions.
The proposal involves creating a national, real-time credit evaluation framework that links invoices and payments through the GST Network (GSTN), allowing trade credit to be recognised as a formal financing instrument.
Lenders could assess MSMEs based on verified cash flows and payment behaviour, rather than solely on balance sheets, significantly improving credit access for small businesses without additional budgetary expenditure.
Recommendations include a clear policy for pre-shipment financing, budgeted assistance for onboarding onto e-commerce platforms, logistics integration, and export documentation support.
MSMEs contribute approximately 45% of India's exports and nearly 30% of gross value added.
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