FY27 Budget: Fortifying MSMEs and Critical Mineral Exploration for Economic Growth

Deloitte India emphasizes the need for the FY27 Budget to support MSMEs through export credit, ease compliance burdens, and enhance critical mineral exploration. These measures aim to bolster trade resilience, safeguard jobs, and support India's goal to become a global manufacturing hub amidst global trade uncertainties.

Deloitte India calls for the upcoming FY27 Budget to implement measures supporting MSMEs with export credit and concessional financing. The focus should also be on funding the exploration of critical minerals to bolster trade resilience and mitigate external vulnerabilities.

The consultancy highlights that MSMEs contribute significantly to India's economic landscape, accounting for 46 percent of exports and being the second-largest employer after agriculture. Reducing financial and compliance burdens will assist these enterprises in navigating global challenges and staying competitive.

Deloitte Economist Rumki Majumdar warns of the impacts of rising protectionism and ad-hoc trade measures on Indian exports. To secure critical mineral resources, the budget must allocate funds for overseas acquisitions and foster global collaborations, particularly with partners in Africa, Australia, and Latin America.

(With inputs from agencies.)