Budget addresses critical pain points while fostering innovation and growth of the MSME sector : Priyadarshi Nanu Pany, Founder & CEO, CSM Tech

Bhubaneswar : The Budget’s focus on MSMEs reflects a nuanced understanding of the sector’s challenges and potential. The multi-pronged approach addresses critical pain points while fostering innovation and growth. The credit-centric measures—including the new guarantee scheme, stress-period support, and the digital footprint-based assessment model could revolutionize MSME financing. By reducing reliance on collateral and traditional metrics, these initiatives promise to unlock capital for a broader spectrum of enterprises, potentially catalyzing growth and job creation.

The expansion of TReDS and SIDBI’s reach demonstrates a commitment to improving liquidity and financial inclusion across MSME clusters. Meanwhile, the focus on food safety and e-commerce export hubs signals a push towards quality improvement and global market access—critical for the sector’s long-term competitiveness.

However, the efficacy of these measures will hinge on implementation. The success of the digital assessment model, for instance, will depend on the robustness of the underlying algorithms and data infrastructure. Overall, these provisions represent a significant step towards modernizing and strengthening the MSME ecosystem. If executed effectively, they could drive substantial economic value, fostering innovation and enhancing India’s position in global value chains.