The Department-Related Parliamentary Standing Committee on Industry presented its Three Hundred and Thirty-Third (333rd) Report on the Demands for Grants (2026–27) of the Ministry of Micro, Small and Medium Enterprises (MSME) to Parliament on 11 March 2026. The report examines budget allocations, implementation of flagship schemes, credit support mechanisms, and structural challenges affecting the MSME sector.
In an official statement, the committee said the Budget Estimates for the MSME Ministry for 2026–27 are INR 245.66 billion, comprising INR 226.47 billion in revenue expenditure and INR 19.19 billion in capital expenditure. However, the committee noted that INR 90 billion, or about 36.6 percent of the total allocation, has been provisioned under the Guaranteed Emergency Credit Line (GECL) despite the scheme having closed operationally on 31 March 2023 and recording no expenditure in FY 2024–25 and FY 2025–26. Excluding the GECL allocation, the committee estimated the effective developmental outlay at about INR 155.66 billion.
The committee also highlighted a pattern of uneven expenditure in recent years. It noted that the Revised Estimates for FY 2025–26 were about 52.2 percent of the Budget Estimates, while 76.53 percent of total expenditure in FY 2023–24 was incurred in the final quarter of the financial year.
Delayed payments to MSMEs were identified as a major structural challenge. The committee cited estimates indicating that approximately INR 8.1 trillion is locked in delayed payments. The MSME Samadhaan portal has recorded 256,892 applications involving claims of about INR 552.44 billion. Despite the launch of an Online Dispute Resolution portal on 15 October 2025, only 17 cases have been disposed of through the system in eight months.
The report noted that MSMEs contribute about 31.1 percent of India’s gross domestic product, 35.4 percent of manufacturing output and 48.58 percent of exports. The sector employs approximately 328.2 million people and includes more than 76.9 million enterprises registered on the Udyam Registration Portal and Udyam Assist Platform.
The committee also reviewed implementation of government programmes supporting MSMEs. The Prime Minister’s Employment Generation Programme (PMEGP), launched in 2008–09, has been allocated INR 45 billion in the 2026–27 Budget, compared with INR 29.54 billion in 2025–26. Since inception to 31 December 2025, the programme has supported about 1.073 million micro-enterprises through margin-money subsidies of approximately INR 292.95 billion and generated an estimated 8.7 million jobs.
The PM Vishwakarma scheme, launched on 17 September 2023 with an outlay of INR 130 billion, has registered about three million beneficiaries within two years. Toolkit e-RUPI vouchers have been issued to 2.55 million beneficiaries, loans worth about INR 47.48 billion have been sanctioned to 550,000 beneficiaries, and INR 38.73 billion has been disbursed to 466,000 recipients.
The committee also reviewed the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which has issued 13.5 million guarantees amounting to about INR 12.39 trillion since inception up to 31 December 2025. The guarantee ceiling was increased to INR 100 million per borrower from April 2025.
The committee recommended redeploying unutilised credit allocations to priority schemes, strengthening mechanisms to address delayed payments, enforcing collateral-free lending norms under credit guarantee schemes, and accelerating the implementation of MSME-related announcements made in recent Union Budgets.
