Reacting to the Union Budget 2026, Shekhar Bhandari, President – SME, Kotak Mahindra Bank, said the Budget charts a growth-oriented path while remaining firmly anchored in fiscal discipline, offering stability as India advances towards its long-term development goals.
Bhandari highlighted that the fiscal deficit being contained at 4.4 per cent in the current year and projected to decline further to 4.3 per cent next year sends a positive signal to markets. He noted that this fiscal prudence provides a stable macroeconomic environment and aligns with Bharat’s broader Vision 2047, supporting sustained economic momentum.
He said the Budget places strong emphasis on durable capacity building, particularly through measures aimed at strengthening the MSME and manufacturing ecosystem. The proposed revival of 2,000 industry clusters, along with the ₹10,000 crore MSME Growth Fund, was described as a reaffirmation of the central role played by small and medium enterprises in long-term economic growth.
Bhandari also pointed to a clear policy shift towards creating “Champion MSMEs”. He said the three-pronged strategy equity support, enhanced liquidity through the Trade Receivables Discounting System (TReDS), and professional guidance via Corporate Mitras—would be especially beneficial for enterprises operating in Tier-II and Tier-III towns.
According to him, these measures collectively strengthen the foundation for scalable, competitive MSMEs and reinforce their contribution to India’s growth story.
