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Policy & Events

Union Budget 2026: What Indian MSMEs Actually Get

Budget headlines are noisy. Here's a founder's read on what the 2026 Union Budget means for MSME capital, compliance and growth.

3 February 2026·8 min read
#budget#MSME#policy

The headline changes

Expanded credit guarantee limits, revised MSME classification thresholds, extended 80-IAC benefits for DPIIT-recognised startups, and a new manufacturing-linked incentive for MSMEs supplying to PLI anchor tenants.

What actually changes for you

If you are a small manufacturer, the raised CGTMSE cover and the MSME classification threshold move you into softer compliance. If you are a service MSME, the GST rationalisation is the bigger story.

Traps to watch

Classification upgrade changes your TDS and ITR obligations. Review with your CA before assuming nothing changes.

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