MSMEs want Union Budget 2026 to boost GST reforms
What's the story
Micro, small and medium enterprises (MSMEs) in India are hoping that the upcoming Union Budget 2026 will strengthen GST reforms. A recent study by NeoInsights has revealed that a whopping 86% of MSMEs expect business growth in 2026 due to these reforms. The report also found that around 80% of MSMEs have witnessed business improvement over the past few months.
Growth aspirations
MSMEs seek support for growth and expansion
The study, released by SME-focused NBFC NeoGrowth, surveyed over 2,000 MSMEs from 25 Indian cities. It revealed that half of the participants plan to take business loans to expand in 2026. More than 71% of those surveyed said they intend to expand their existing shop or open a new one, indicating a strong confidence in scaling their physical presence.
Policy expectations
MSMEs want smoother access to government schemes
The study also found that 25% of MSMEs want faster and smoother access to government schemes. They also want the continued simplification of GST and compliance processes. Many MSMEs highlighted the importance of digital tools and online payments in enhancing efficiency, transparency, and customer reach. Suresh Bansal, Founder and CEO of DCGpac, emphasized that the Union Budget must focus on sustainable manufacturing, MSME enablement, and technology-led supply chains.
Sectoral support
Policy support in packaging and logistics urged
Bansal also called for stronger policy support in packaging, logistics, and e-commerce. He said these sectors form the "invisible backbone of India's consumption economy," but need more robust policy backing to scale responsibly. He hopes the Budget will focus on incentives for recyclable and eco-friendly packaging, rationalizing GST structures on sustainable materials, and accelerating circular economy models like reuse and packaging-as-a-service.
Sectoral insights
Founders share expectations for Budget 2026
Dishi Somani, the Founder of Dishis Designer Jewellery, hopes to see policy measures supporting India's handcrafted and design-led jewelry sector in Budget 2026. Ankit Virmani, Director of Esskay Beauty Resources, stressed the need for the upcoming Budget to tackle affordability and structural growth challenges in the beauty and wellness sector. He urged rationalizing GST and customs duties on essential imports/raw materials.