MSME Push to Infra Growth: Women Leaders React to Budget 2026

By: WE staff

Introduced in the Indian Parliament, the Union Budget 2026-2027 reflects India’s approach to the global economic fluctuations and shifting investment trends, while keeping a sharp focus on growth and fiscal responsibility. The finance minister described the Budget as Yuva Shakti-driven, saying that it aims to convert potential into performance by keeping a sharp focus on domestic manufacturing, high-growth services, and infrastructure development.

Announced on February 1, it marks a significant push to India's startup and MSME ecosystem, signalling a shift from short-term incentives to long-horizon, system-building reforms. Instead of a single flagship scheme, the Budget assembles a layered package aimed at easing capital access, lowering compliance friction, and strengthening the infrastructure that underpins innovation-led growth.

Key announcements include a new Rs 10,000 crore SME Growth Fund and a Rs 2,000 crore top-up for the Self-Reliant India (SRI) Fund to expand equity financing for startups and MSMEs. The launch of India Semiconductor Mission 2.0 underscores the government’s intent to deepen India’s role in global chip design and manufacturing, while enhanced outlays for electronics components support deep-tech and hardware startups.

Sector-specific initiatives span AI, with fresh allocations to the IndiaAI Mission and the AVGC sector, through content creator labs across schools and colleges. Measures such as ‘Corporate Mitras’ and relaxed export norms further reflect a focus on predictability, scale, and global competitiveness for emerging ventures.

We hear from leading Indian women industry leaders on their thoughts about the budget announcements. Here’s what they had to say.

Padmaja Ruparel, Co-founder, IAN Group

"This budget recognizes that the largest obstacle facing micro and small businesses is cash rather than intent. The funding shortfall at crucial stages of expansion is addressed by the planned ₹10,000 crore SME expansion Fund and the ₹2,000 crore fund for microbusinesses. The creative integration of TReDS with GeM, which can greatly enhance MSMEs' cash flow predictability and payment discipline, is noteworthy. These actions, when paired with digital interventions like as the Bharat Bistar AI tool for agriculture, demonstrate a deliberate use of technology to increase productivity, fortify organizational resilience, and give companies the confidence to invest, recruit, and grow."