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Union Finance Minister Nirmala Sitharaman on Wednesday, November 12, chaired the third pre-Budget consultation meeting with key stakeholders from the micro, small and medium enterprises (MSME) sector in New Delhi. The discussions formed part of the ongoing exercise by the Ministry of Finance to gather inputs for the upcoming Union Budget 2026-27, which is scheduled to be presented in Parliament on February 1 next year.

The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, the Secretary of the Department of Economic Affairs, and senior officials from both the Ministry of Finance and the Ministry of MSME. Representatives from leading MSME associations and industry bodies shared their suggestions on policy measures needed to enhance growth and competitiveness across the sector.

According to the Ministry of Finance, the consultations revolved around addressing long-standing challenges faced by the MSME sector, including easier access to finance, delayed payments, and the need for better technology adoption. Participants also emphasised measures to reduce compliance burdens and improve ease of doing business for small enterprises.

Officials noted that the MSME sector, which employs over 11 crore people and contributes around 30 per cent to India’s GDP, continues to be a vital pillar of the economy. Enhancing access to credit through simplified lending norms, expanding digital payment infrastructure, and providing fiscal support for technology upgradation were among the key themes raised during the session.

Wednesday’s meeting marked the third in a series of pre-Budget consultations that the Ministry of Finance conducts annually before finalising the Budget. Earlier this week, Nirmala Sitharaman had met with leading representatives from agriculture and economic policy sectors as part of the first and second rounds of discussions.

These consultations are designed to ensure that the Union Budget reflects the priorities and perspectives of various sectors. The process allows the government to assess on-ground realities and identify policy interventions that can sustain growth momentum while addressing sector-specific challenges.

The MSME sector has consistently been a focus area in recent Budgets, with several policy measures introduced to boost its resilience. Initiatives such as the Emergency Credit Line Guarantee Scheme (ECLGS), Production Linked Incentive (PLI) schemes, and the ‘Raising and Accelerating MSME Performance’ (RAMP) programme have aimed to strengthen the ecosystem for small and medium enterprises.

Officials said that the ongoing consultation process is expected to shape future policy decisions, particularly in areas linked to credit flow, employment generation, and digital inclusion. With India aiming to become a $5 trillion economy, the MSME sector’s role in innovation, exports and job creation remains critical.

The Union Budget for 2026-27 is scheduled to be presented by FM Nirmala Sitharaman in Parliament on February 1, continuing the government’s practice of unveiling the Budget at the start of the fiscal planning cycle.