Government proposes to top up Self Reliant India Fund with Rs 4,000 crore in 2026-27 to support MSMEs

In her Budget speech, Union Finance Minister Nirmala Sitharaman also proposeed Natural Fibre Scheme, Textile Expansion and Employment Scheme, and National Handloom and Handicraft programme.

Finance Minister Nirmala Sitharaman with the digital tablet, enclosed in a traditional red 'bahi-khata' style pouch, at the Parliament premises before the presentation of the ‘Union Budget 2026-27’, in New Delhi, Sunday, Feb. 1, 2026. Photo| PTI

NEW DELHI: Finance Minister Nirmala Sitharaman on Sunday announced that the Self-Reliant India Fund will be topped up by Rs 4,000 crore in 2026-27 to support micro, small and medium enterprises (MSMEs).

The fund was announced in 2023 to infuse Rs 50,000 crore in equity funding into MSMEs with the potential and viability to grow into large units.

While presenting the Budget 2026-27, the minister also proposed an integrated textile programme with five sub-parts, a move that could help the sector, which is facing challenges due to steep 50 per cent tariffs imposed by the US.

In her Budget speech, she proposeed Natural Fibre Scheme, Textile Expansion and Employment Scheme, and National Handloom and Handicraft programme.

The minister also proposed to make TReDS as transaction platforms for all purchases from MSMEs by central public sector enterprises.

TReDS platform - Receivables Exchange of India Ltd (RXIL) is a joint venture promoted by SIDBI and NSE.

The minister added that the government will continue to develop infrastructure in Tier 2, and Tier 3 cities.