FACSI Advocates Key Reforms for MSE Growth in 2026-27 Union Budget

The Federation of Associations of Cottage and Small Industries (FACSI) has called for tax, credit, and regulatory relief for micro and small enterprises in the 2026-27 Union Budget. Key requests include establishing a council for MSEs, simplifying GST procedures, and enhancing credit access with collateral-free loans.

The Federation of Associations of Cottage and Small Industries (FACSI) has formally urged the central government to implement significant tax, credit, and regulatory relief measures for micro and small enterprises (MSEs) in the forthcoming 2026-27 Union Budget. These measures are crucial for sustaining growth and strengthening the role of MSEs in the industrial ecosystem.

In a pre-budget correspondence to Finance Minister Nirmala Sitharaman, FACSI President H K Guha outlined various recommendations, formulated after consultations with numerous entrepreneur associations and MSE groups nationwide. Key demands include the creation of a dedicated council for MSEs under the Ministry of MSME, a higher GST exemption threshold, and simplified GST returns for small units.

The federation also highlighted liquidity concerns and sought statutory collateral-free lending up to Rs 1 crore at an interest cap of 6-7 percent, with interest subvention during financial stress periods. FACSI further emphasized the need for GST refunds within 15 days and proposed an Export Risk Equalisation Fund for export-oriented units to mitigate risks from sudden tariff hikes.

(With inputs from agencies.)