Union Finance Minister Nirmala Sitharaman on Sunday declared that the Self-Reliant India Fund would receive an additional ₹4,000 crore in fiscal year 2026-27 to bolster micro, small, and medium enterprises (MSMEs).
Initially launched in 2023, this fund was designed to provide ₹50,000 crore in equity capital to MSMEs demonstrating the capacity and stability to scale into major corporations.
During the 2026-27 Union Budget presentation, the finance minister further introduced a comprehensive textile initiative featuring five specialized components. This strategy aims to revitalize a sector currently struggling under the weight of aggressive 50 percent tariffs implemented by the United States.
In her address, she outlined the Natural Fibre Scheme, the Textile Expansion and Employment Scheme, and a revamped National Handloom and Handicraft initiative.
Furthermore, the minister recommended transitioning TReDS into the mandatory transaction interface for every purchase made from MSMEs by central public sector entities. The TReDS entity — Receivables Exchange of India Ltd (RXIL) — is a collaborative venture established by SIDBI and the NSE.
Additionally, the minister emphasized that the administration remains committed to advancing infrastructure development across various Tier 2 and Tier 3 urban centers.
