Industry looks to Budget for modernization push, skilled jobs and innovation boost

With the Union Budget around the corner, the industrial sector — particularly small scale industries (SSIs) and MSMEs — has outlined a clear wish list centred on modernization, innovation, skilled manpower and large-scale job creation.

Industry associations say the coming Budget must strengthen the sector’s fundamentals at a time when rising costs, regulatory hurdles and slowing cash flows are putting pressure on small units.

Abhay Bhor, president of the Forum of Small Scale Industries Association, Maharashtra State, said the Budget should decisively prioritize industrial modernization and employment generation. “It is absolutely essential to focus on innovation, job creation and the core needs of industries—skilled manpower, subsidies for robotics and technology-based machinery, and strong road and logistics networks connecting industrial zones,” he said.

Bhor stressed the need to open up railway and government supply systems to new startups, calling it critical for nurturing innovation and competition. He also flagged gaps in the implementation of schemes meant for women entrepreneurs.

“Despite skill development centres, MUDRA loans and other initiatives, many women are still unable to access benefits. These schemes must be made more accessible, efficient and operational on the ground,” he said.

Faster processing of GST returns, Bhor added, would ease liquidity pressures and allow industries to reinvest funds for expansion. He also called for export facilitation centres for rural industries, a review of electricity tariffs in Maharashtra and business-friendly schemes to curb the shutdown of small units. “Such measures will boost employment and support the growth of rural and women-led enterprises,” he said.

Echoing similar concerns, the Association said it expects a Budget that actively drives industrial growth by supporting startups, women and rural entrepreneurs, promoting innovation, strengthening infrastructure and generating employment. Its demands include subsidies for advanced machinery and robotics, easier access to government contracts for startups, improved implementation of women-centric schemes, better logistics and rural export hubs, and lower power tariffs.

From Pimpri-Chinchwad, MSME representatives flagged credit and tax issues as key pain points. Sandeep Belsare, president of the Pimpri Chinchwad Small Industries Association, said simplified loan schemes for MSMEs were urgently needed. “We are expecting an increase in the loan limit under the Credit Guarantee Fund Trust for MSMEs,” he said.

Belsare also called for a streamlined GST registration and cancellation process, alongside clarity on GST for leased premises. “The 18% GST applied to leased properties should be abolished, as it is property-related,” he said. He added that industry hopes the Budget will raise income tax limits, simplify the tax structure and revive discontinued subsidies for new machinery purchases, with at least a 15% subsidy for MSMEs.

Larger manufacturers, meanwhile, are looking beyond capacity-building to global competitiveness. Bharat Gite, CEO and managing director of Taural India, said the government has laid a strong foundation for manufacturing growth through infrastructure investment and MSME support, including in Tier II and Tier III regions.

“As we move into the next phase of Make in India, the focus must shift from building capacity to building global competitiveness,” Gite said. He expressed hope that the Union Budget 2026–27 would accelerate this transition by backing clean energy, sustainable mining, carbon-intelligent production and wider MSME participation—enabling India to scale sustainable manufacturing, strengthen exports and emerge as a trusted global industrial partner.