Compliance Simplified: ‘Corporate Mitras’ and Decriminalisation of Bookkeeping Defaults
The Budget 2026-2027 introduces a comprehensive, three-pronged strategy designed to empower Micro, Small, and Medium Enterprises (MSMEs) to grow as “Champions” in India’s economic trajectory. Positioned as a core component of the “Viksit Bharat” vision, the budget emphasises enhancing the productivity and competitiveness of these enterprises while building their capacity to become strong partners in national prosperity.
Capital Infusion: A major highlight for MSMEs is the significant infusion of capital through dedicated financial vehicles. The government has announced a dedicated ₹10,000 crore SME Growth Fund, alongside a ₹2,000 crore top-up for the Self-Reliant India Fund established in 2021. These funds aim to provide essential equity support, enabling smaller businesses to scale their operations and transform potential into high-performance achievement. In response to the announcement, Debarshi Dutta, Co-Founder & CEO, Ayekart said, “The announcement of the ₹10,000 crore MSME Growth Fund sends a strong signal of intent to back India’s entrepreneurial backbone and create equity pathways for high-potential micro and small enterprises. Alongside measures to improve liquidity and access to formal finance, this can significantly enhance supply-chain capacity and accelerate value addition.”
Liquidity & Cash Flow: Addressing long-standing liquidity and cash flow challenges, the budget mandates the Trade Receivables Discounting System (TReDS) as the transaction settlement platform for all purchases made from MSMEs by Central Public Sector Enterprises (CPSEs). To further enhance liquidity, the government is linking the Government e-Marketplace (GeM) with TReDS to facilitate quicker and cheaper financing. Additionally, a new credit guarantee support mechanism through CGTMSE will be introduced for invoice discounting on TReDS, and receivables will be treated as asset-backed securities to develop a secondary market.
Corporate Mitras: The budget also prioritises the Ease of Doing Business by reducing the regulatory and compliance burden on small taxpayers. Professional institutions will facilitate the development of “Corporate Mitras,” particularly in Tier-II and Tier-III towns, to provide affordable compliance support. Significant legal reforms include the decriminalisation of the non-production of books of account and documents, as well as certain requirements related to TDS payments. Furthermore, small taxpayers will benefit from a rule-based automated process to obtain lower or nil deduction certificates.
For MSMEs involved in global trade, the budget removes the current ₹10 lakh value cap per consignment on courier exports, opening new avenues for international e-commerce. Exporting units in sectors like leather, textiles, and footwear will see the time limit for exporting final products extended from 6 months to 1 year. Additionally, the budget proposes a scheme to revive 200 legacy industrial clusters, which will likely bolster the infrastructure and collaborative potential of MSMEs operating within these hubs.
Finally, the budget focuses on Trust-based Governance by recognising regular importers with longstanding supply chains in the risk system to reduce cargo verification needs. Tier 2 and Tier 3 Authorised Economic Operators will also see their duty-deferral period enhanced from 15 to 30 days, providing much-needed operational flexibility. These combined measures reflect a clear “Sankalp” to ensure every sector has the resources and opportunities for meaningful participation in India’s growth.