- KredX Editorial Team
- 01 Mar 21
- Budget

Following the economic slowdown in 2020, the COVID-hit MSME sector had pinned its hope on Union Budget 2021, seeking ground-breaking reforms that would facilitate a smooth revival. And, the announcements made that day did not fail them.
In India’s first-ever digital-only Union Budget, Finance Minister, Nirmala Sitharaman made some key proposals concerning the micro, small, and medium enterprises.
Union Budget 2021 – Announcements About The MSME Sector
Here is a rundown of some key highlights from Union Budget 2021 concerning India’s MSME sector:Budget Allocation
The Budget estimates for the MSME sector in FY 20-21 stood at Rs. 7,572 crore. However, for this fiscal year, the Finance Ministry allocated Rs. 15,700 crore, which is more than double the previous year’s allotment. A significant portion of this allocation for FY 21 – 22 has been made keeping in mind the Emergency Credit Line Guarantee Scheme (ECLGS).Resolution Of Insolvency
The National Company Law Tribunal (NCLT) infrastructure has not been greatly successful in providing effective solutions; insolvency cases are still pending. To combat this issue, the Finance Minister announced the following measures:- Introduction of changes to reinforce the framework of NCLT
- Implementation of new ecosystems, for instance, e-courts to conduct virtual hearings to resolve and close cases efficiently