CHENNAI: The Budget proposal to create ‘Champion MSMEs’ is expected to discourage micro and small firms from remaining dwarf, by offering equity support. “I propose to introduce a dedicated Rs 10,000 crore SME Growth Fund, to create future Champions, incentivizing enterprises based on select criteria,” the Budget said. According to the industry, the fund for small and medium enterprises will force the firms to increase their turnover and grow. The Economic Survey of 2019 had referred the firms which remain small and unproductive despite being old for the sake of incentives, as dwarfs. However, the government has not announced the criteria for this fund.
“Creating Champion MSMEs through dedicated equity support, alongside continued growth capital for micro enterprises directly addresses the challenge of helping firms move to the next stage of growth” Divyesh Dalal, MD, DBS Bank India.
The Budget also announced Rs 2,000 crore top-up to Self-Reliant India Fund. Launched in May 2020, it has Rs 10,000 crore from government side and Rs 40,000 crore from private equity/venture capital funds. As of March 2025, the SRI Fund has invested around Rs 10,979 crore in 577 MSMEs, said Anil Bharadwaj of FISME.
Revival of 200 legacy clusters through infra and tech upgradation will address obsolescence. The details of this have not been announced, FISME said. However, MSMEs, hit by QCO disruption and tariff conundrum, were disappointed.
