Union Budget 2026–27 takes a pragmatic approach to strengthening India’s financial ecosystem by addressing three linked gaps: household liquidity, growth capital for small businesses and depth in equity markets. India has made steady progress on MSME financing through credit guarantees, digital lending platforms and public schemes, but equity participation has remained limited. While this does not directly fund businesses, it deepens liquidity and participation in India’s listed equity markets. Stronger public markets improve price discovery and capital formation, complementing efforts to build equity financing at the enterprise level. Taken together, these measures aim to unlock capital where it matters most across household cash flows, growing enterprises and capital markets that enable wider participation.

Source: The Telegraph February 02, 2026 02:54 UTC