Empowering growth: Navigating the dynamics of MSME industries

Bajaj Finserv Business Loans can provide MSMEs with the necessary capital to expand and thrive.
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2 minutes
06 February 2026

Micro, small, and medium enterprises or MSMEs play a vital role in the Indian economy, contributing significantly to the country's GDP, exports, and employment generation. However, securing financing has remained an issue for MSMEs, limiting their potential to scale up and compete in today's business environment. This is where Bajaj Finserv Business Loans come in, providing MSMEs, including those in diverse MSME industries, with access to capital and giving them the much-needed boost to succeed.

What are MSME industries?

Micro, small, and medium enterprises (MSMEs) form the backbone of our industrial landscape. This diverse sector encompasses businesses ranging from local artisans and small manufacturers to tech startups, each playing a unique role in driving economic progress.

Announcement for MSME growth in Union Budget 2026

The Union Budget 2026 introduces targeted initiatives to accelerate MSME growth, with a strong emphasis on access to capital, regulatory efficiency, and improved cash flow.

  • Growth capital: Announces a Rs. 10,000 crore SME growth fund and strengthens the SRI Fund with an additional Rs. 2,000 crore allocation.

  • Enhanced liquidity: Makes the use of TReDS mandatory for CPSEs and integrates it with the GeM platform, helping to speed up payments and improve cash flow for small suppliers.

  • Sectoral push: Allocates Rs. 40,000 crore to electronics manufacturing and outlines plans to modernise 200 legacy industrial clusters, reinforcing the ‘Make in India’ initiative.

Together, these measures provide MSMEs with the tools needed to ease operational challenges and scale sustainably in a competitive environment.

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Key Features of Budget 2025-26 for MSMEs (February 2025)

Scheme for First-Time Entrepreneurs:
A new scheme will be launched to provide term loans of up to Rs. 2 crore to 5 lakh first-time entrepreneurs, including women, Scheduled Castes (SC), and Scheduled Tribes (ST), over the next 5 years.

Manufacturing Mission Focus Areas:
The mission will focus on:

Focus Area

Description

Ease and cost of doing business

Making it easier and cheaper to start and run a business.

Future-ready workforce for in-demand jobs

Creating a skilled workforce to meet future job needs.

A vibrant and dynamic MSME sector

Strengthening and growing the MSME sector.

Availability of technology

Ensuring businesses have access to modern technology.

Quality products

Encouraging businesses to produce high-quality products.

Clean tech manufacturing for climate-friendly development

Promoting eco-friendly manufacturing methods.


Measures for Labour-Intensive Sectors:

Focus Area

Description

Footwear & Leather Sectors

A scheme expected to create 22 lakh jobs, generate a turnover of Rs. 4 lakh crore, and exports of over Rs. 1.1 lakh crore.

Toy Sector

Focus on creating clusters, developing skills, and building a manufacturing ecosystem to produce high-quality, innovative, and sustainable toys under the 'Made in India' brand.

Food Processing

Establishment of a National Institute of Food Technology in Bihar, increasing income for farmers and providing opportunities for skilling, entrepreneurship, and employment for youth.


Enhancement of Credit Availability with Guarantee Cover:

Rs. in Crore

Credit Guarantee Cover

Current

Revised

MSEs

5

Startups

10

Exporter MSMEs

For Term Loans Up To Rs. 20 Crore


Revision in Classification Criteria for MSMEs:

Rs. in Crore

Investment

Turnover

Current

Revised

Current

Micro Enterprises

1

2.5

Small Enterprises

10

25

Medium Enterprises

50

125

 

Challenges faced by MSMEs

MSMEs face several challenges, which limit their growth and development and affect their overall business success.

  • Access to finance: Limited access to funds remains a pervasive challenge for MSMEs, hindering their expansion and development.
  • Technological adoption: Embracing technological advancements can be a daunting task for smaller enterprises with constrained resources.
  • Market penetration: Competing with larger players in the market poses a significant hurdle for many MSMEs.

 

Additional Read: MSME Classification

 

Bajaj Finserv Business Loans for MSMEs

Bajaj Finance provides business loans to MSMEs to help them grow. A Bajaj Finserv Business Loan gives you the funds you need to support and expand your business.

You can use the loan for:

  • Business growth: Open new branches, increase production, introduce new products or services, and hire more staff.

  • Machinery and upgrades: Buy or upgrade equipment to improve efficiency, increase output, and lower running costs.

  • Working capital: Manage day-to-day expenses such as salaries, rent, and utility bills.

  • Flexible repayment: Choose a repayment period that matches your cash flow. You can use the business loan EMI calculator to plan your monthly payments.

  • Attractive interest rates: Enjoy competitive business loan interest rates that help keep borrowing costs low.

Check your business loan eligibility to find out how much you can borrow. Bajaj Finserv business loans help MSMEs meet their needs for expansion, equipment, and working capital. Don’t let a shortage of funds slow you down—apply for a Bajaj Finserv business loan and move your business forward.

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Frequently asked questions

How many industries are there in MSME?

The MSME sector encompasses various industries, with no fixed number. It includes sectors such as manufacturing, services, and trade, catering to diverse needs and markets.

What is the limit of the MSME industry?

The classification of MSME industries is based on investment in plant and machinery or equipment for manufacturing units, and investment in equipment for service enterprises. The limit varies based on the size of the enterprise and is subject to periodic revisions by the government.

What are the schemes under the Ministry of Micro Small and Medium Enterprises?

The Ministry of Micro, Small and Medium Enterprises (MSME) offers several schemes to support entrepreneurs and promote the growth of MSMEs. Some of the prominent schemes include credit linked capital subsidy scheme (CLCSS), Prime Minister’s Employment Generation Programme (PMEGP), and credit guarantee fund trust for micro and small enterprises (CGTMSE).

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