Chennai, Dec 28 (.) Formation of a Micro Enterprises Council under the Ministry of Micro, Small and Medium Enterprises (MSME), higher GST exemption thresholds and a single simplified GST return for micro units, statutory collateral-free lending up to Rs.100 lakhs for micro enterprises with interest capped at 6–7% are some of the major items in the budget wish list submitted by Association of Indian Entrepreneurs (AIE) to Indian Finance Minister Nirmala Sitharaman.
The AIE have also listed out its various other wishes that should find presence in the 2026-27 Indian budget.
According to AIE, government policy decisions are often taken without impact assessment on micro enterprises, leading to rollbacks and chaos.
Hence, there should be a Micro Enterprises Council under the Ministry of MSME for mandatory micro-impact assessment before rollout of major fiscal, trade, or regulatory policies. There should be an institutionalised consultation, not post-damage representations.
Stating credit for micro enterprises are not available contrary to the announcements AIE wants statutory collateral-free lending up to Rs.100 lakhs for micro enterprises with interest capped at 6–7% and mandatory renewal of working capital limits for Goods and Services Tax (GST) compliant micro units without fresh appraisal.
Similarly, there should be exclusive micro-enterprise lending targets for SIDBI and PSU banks (not clubbed with MSMEs).
Interest free loan assistance to be extended for import substitution development costs to micro enterprises, AIE submitted.
On the taxation front, AIE wants the Finance Minister to provide higher GST exemption thresholds and a single simplified GST return for micro units; time-bound GST refunds (within 15 days) with statutory interest for Government delays; complete decriminalisation of procedural lapses—no prosecution for minor errors and unified Annual Compliance Return replacing multiple filings under GST, labour, and local laws.
Referring to the external shocks that first affects the micro units, AIE wants the following:
o Export Risk Equalisation Fund to compensate micro exporters impacted by suddentariff hikes.
o Temporary duty drawback enhancement and interest relief during tariff shocks.
o Emergency Working Capital Window when wars disrupt raw materials, fuel, and shipping routes.
o Government-backed price stabilisation mechanism for critical imported inputs.
o Freight equalisation subsidy for micro exporters during abnormal container shortages.
o Forex fluctuation protection scheme for micro enterprises with limited hedging capacity.
o RBI-supported simplified hedging instruments with subsidised cost for micro units.
Signing off AIE’s budget wish list, K.E. Raghunathan, Founder Chairman said: “Union Budget 2026–27 must therefore treat micro enterprises as economic infrastructure, not as an afterthought.”
. VJ SAS .