What are PHDCCI's key budget demands for MSMEs in 2026-27?

PHDCCI is asking for an interest subvention scheme, higher MUDRA loan limits, and tax audit exemption for micro units.

How can the government support MSME exporters according to PHDCCI?

PHDCCI suggests reintroducing the Interest Equalisation Scheme and extending it to service exporters.

What changes are proposed for MSME tax audits?

The PHDCCI proposed exempting micro enterprises with turnover up to ₹10 crore from mandatory tax audits.

Home / Business and Economy / MSMEs Demand Budget Boost: Lower Costs, Higher Loans!

MSMEs Demand Budget Boost: Lower Costs, Higher Loans!

7 Jan

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Summary

PHDCCI proposes 2% interest subsidy on MSME loans.
MUDRA loan limits may increase significantly.
Micro units seek exemption from tax audits up to ₹10 crore turnover.

MSMEs Demand Budget Boost: Lower Costs, Higher Loans!

The PHD Chamber of Commerce and Industry (PHDCCI) has outlined critical recommendations for the Union Budget 2026-27, emphasizing the vital role of Micro, Small, and Medium Enterprises (MSMEs) in India's economic trajectory. The chamber highlighted that MSMEs are essential for achieving a 10% economic growth rate, noting their substantial contribution to manufacturing output and their position as a major employer after agriculture. The sector's increasing integration into global trade, with exports forming a significant portion of its output, underscores the need for supportive policies.

PHDCCI's proposals include reintroducing a 2% interest subvention scheme for MSMEs on loans from banks and NBFCs, addressing the persistent issue of high credit costs. Furthermore, the chamber recommended revising the loan limits under the Pradhan Mantri MUDRA Yojana to reflect current project costs, suggesting increases for Shishu, Kishore, and Tarun categories. Support for MSME exporters, including a potential reintroduction of the Interest Equalisation Scheme, is also a key ask.