What policy changes do MSMEs want in Budget 2026?

MSMEs are requesting predictable incentives for 10-15 years for product development and R&D, alongside a compliance holiday for the first few years.

How are delayed payments impacting Indian MSMEs?

Delayed payments from large clients significantly constrain MSME growth and cash flow, with calls for stricter enforcement of payment frameworks.

What are the main GST concerns for MSME manufacturers?

Inverted GST duty structures and accumulating input tax credits without timely refunds are increasing working capital stress for manufacturers.

Home / Business and Economy / MSMEs Demand Budget 2026 Fixes: Policy, Payments & GST

MSMEs Demand Budget 2026 Fixes: Policy, Payments & GST

26 Jan

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Summary

MSMEs seek policy incentives for up to 15 years for product development.
Delayed payments remain a critical issue for MSMEs, impacting cash flow.
Inverted GST duty structures increase working capital stress for manufacturers.

MSMEs Demand Budget 2026 Fixes: Policy, Payments & GST

India's Micro, Small, and Medium Enterprises (MSMEs) are presenting clear expectations for the Union Budget 2026, emphasizing policy execution over headline schemes. Business sentiment is cautiously optimistic, with many MSMEs expecting growth in 2026, driven by improved recent performance.

Founders stress a significant policy mismatch, where timelines for government incentives often expire before products achieve market fit. They advocate for 10-15 year predictable incentives for product development and R&D. A compliance holiday for the initial years is also requested.

Delayed payments from large corporate buyers and PSUs continue to be a major constraint. MSMEs are calling for stricter enforcement of the 45-day payment framework, with automatic interest accrual on overdue invoices.