Union Budget 2026: ₹10,000 crore fund to build ‘champion’ SMEs; MSMEs, critical minerals get push

By Shivli Singh
Union Budget 2026: ₹10,000 crore fund for the creation of ‘champion’ SMEs; MSMEs, critical minerals get push. On Sunday, finance minister Nirmala Sitharaman announced the establishment of a ₹10,000 crore fund for “champion” SMEs, marking a renewed push to fortify India’s manufacturing and services backbone while maintaining economic growth. With her ninth, and indeed first ever, Union Budget delivered on a Sunday, Ms. Sitharaman also announced a ₹4,000 crore top-up to the Self Reliance India Fund in FY27 to support micro, small and medium enterprises. Troubles for micro and small and medium enterprises are being mitigated by introducing measures to strengthen access to capital, expand high potential firms and raise the competitive strength of enterprises in the face of global trade uncertainties. The Budget also specifically noted support to mineral-rich States—Odisha, Kerala, Andhra Pradesh and Tamil Nadu for construction of critical minerals centres and a push for the long-term supply chain security necessary for clean energy, electronics and advanced manufacturing. The Finance Minister said the proposals would balance growth imperatives against fiscal sensibility and reforms to buffet the economy from external shocks, namely trade frictions and U.S. tariffs. The Budget follows the tabling of the Economic Survey 2025–26 last week, which contained the report by Chief Economic Advisor V. Anantha Nageswaran. The Survey calculated 2025–26 growth at 7.4%, with a “nowcast” of 7 percent for the October–December quarter and anticipated growth between 6.8 and 7.2 percent for the year 2026–27, while calling for flexibilities in fiscal management at the Centre, as well as warning States not to be seen as getting sucked into worsening financials. Additional information will be added to sectoral contributions and tax preparations before Parliament passes a budget.