The ‘Yuva-Shakti’-driven Union Budget for FY 27 made the right noises when it comes to promoting productivity in India and dealing with global headwinds on trade. For India’s small businesses and entrepreneurs, the Budget had multiple announcements on formalising the sector, improving liquidity, and availability of risk capital to fast-track growth.

The Budget announced a Rs 10,0000-crore SME Growth Fund, offering equity support to enterprises based on select criteria. The government has also announced an additional corpus of Rs 2000 crore towards the Self-Reliant India Fund announced in 2021 at a corpus of Rs 50,000 crore initially, to provide equity funding to MSMEs with high growth potential. The move improves capital support for MSMEs, which is the second largest contributor to India’s GDP at 30.1 percent, employing 28 crore........

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