India's MSMEs set for a major tech boost with new ₹2,000cr scheme
India's government is likely to announce a ₹2,000 crore tech upgrade plan for MSMEs in the 2026-27 budget, aiming to help small businesses get smarter and greener with better machines and automation.
The scheme may be announced when the Union Budget is presented on February 1, 2026.
What's in it for MSMEs?
If your business makes under ₹50 crore a year, you could get a 20% subsidy to invest in energy-saving equipment or smart manufacturing tools.
This move specifically targets micro and small enterprises—think startups and local manufacturers—helping them keep pace with global standards.
Why this matters now
With Europe about to slap carbon taxes on imports starting next year and the UK planning similar measures in 2027, Indian MSMEs need to level up or risk losing out.
By supporting greener upgrades (and possibly tying into the green loan scheme launched two years ago), the government wants to keep Indian exports competitive.
The bigger picture
MSMEs are the backbone of India's economy—73 million strong, powering nearly half our exports and a third of GDP.
This scheme is all about making sure these businesses aren't left behind as the world goes digital—and green.