MSMEs want tax breaks and easier loans in upcoming budget
With the 2026-27 Union Budget around the corner, India's small businesses (MSMEs) are asking for tax relief, faster GST refunds, and better access to credit.
Industry groups like FISME are pushing for an 8% GST rate in cases where inputs are taxed at 18% and final products at 5%, refunds on machinery purchases, and Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), has proposed raising the GST exemption limit to ₹1.5 crore so more small firms can skip complicated filings.
Why should you care?
MSMEs power nearly a third of India's economy and employ millions—so when they struggle with cash flow or exports due to tough taxes or global issues (like US tariffs), it hits everyone.
Their demands for easier loans, capped interest rates, and more support could help keep jobs stable and boost growth at a time when global uncertainty is making things harder for Indian businesses.