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Budget 2026 signals a strong leap towards a Viskit Bharat with timely push toward strengthening India’s credit ecosystem, particularly for small businesses and individual taxpayers.

The Government has continued its focus on widening access to credit and creating a robust financial system. India’s small businesses have traditionally faced challenges in accessing formal credit; the proposed Rs 10,000 crore SME Growth Fund can be a significant step toward energising the growth of the key sector. Additionally, the proposed ?2,000 crore top-up to the Self Reliant India Fund improves the supply of capital for micro and small enterprises. Together these two initiatives can improve the pipeline of credit-ready businesses and deepen the formal lending ecosystem.

Also, with a larger push towards infrastructure development at scale, the government clearly aims to provide fresh impetus to employment generation across sectors. Special domestic provisions such as ODOP (One District One Product) and policies encouraging multinational companies to establish global data centres in India underscore the government’s proactive approach to changing economic and technological landscapes.

As India targets long-term, broad-based economic growth, setting up of a high-level committee on banking for Viksit Bharat can also become an important step towards strengthening the financial sector.

Introduction of Total Return Swaps on corporate Bonds that would allow investors to gain exposure to bonds without directly holding the underlying securities should enhance liquidity and participation.

On the direct tax side, the introduction of the Income Tax Act 2025, represents a major step toward simplification of process and rationalisation of assessment. A simplified journey and a removal of ambiguities will ease compliance for individuals and small businesses.