For equity support, “I propose to introduce a dedicated ₹10,000 crores SME growth fund to create future champions, incentivising enterprises based on select criteria. I also propose to top up the self-reliant India fund set up in 2021 with ₹2,000 crore to continue support to micro-enterprises and maintain their access to risk capital,” she said.
NEW DELHI: Finance Minister Nirmala Sitharaman,presenting the Union Budget in the Lok Sabha on Sunday, proposed to set up a Rs 10,000 crore fund to create champion small and medium enterprises (SMEs) to boost the economy.
Sitharaman, proposed introducing a dedicated ₹10,000-crore SME growth fund to create future jobs and incentivise enterprises based on select criteria. She stated that the government recognises MSMEs as a vital engine of growth, and proposes a three-pronged approach to help them grow as champions.
For equity support, “I propose to introduce a dedicated ₹10,000 crores SME growth fund to create future champions, incentivising enterprises based on select criteria. I also propose to top up the self-reliant India fund set up in 2021 with ₹2,000 crore to continue support to micro-enterprises and maintain their access to risk capital,” she said.
Presenting Union Budget 2026-27, she also proposed a scheme for container manufacturing to create globally competitive ecosystem.
Also, mega textile parks with focus on value addition to technical textiles would be set up.
FM proposes incentives of Rs 100 cr for single bond issuance by municipal corporations
Sitharaman also proposed to introduce a market-making framework with suitable access to funds and derivatives on corporate bond indices. She also proposed introducing total-return swaps for corporate bonds.
“To encourage the issuance of municipal bonds of higher value by larger cities, I propose an incentive of ₹100 crore for a single bond issuance of more than ₹1000 crore,” The Minister said.
“The current scheme under Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which incentivises issuances up to ₹200 crore, will also continue to support smaller and medium towns,” Sitharaman noted.
Govt proposes Rs 5,000 crore allocation for city economic regions
Sitharaman announced a major push to strengthen urban growth by focusing on the development of city economic regions (CERs), with a proposed allocation of Rs 5,000 crore per region over five years to implement their plans through a “challenge mode.”
The finance minister described cities as India’s engines of growth, innovation and opportunity, adding that the new initiative would focus on Tier II and Tier III cities, as well as temple towns, which require modern infrastructure and improved basic amenities.
She said that the Budget aims to further amplify the potential of cities to deliver the economic power of agglomerations by mapping CER, based on their specific growth