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Below Quote on  Union Budget 2026-27 By George Alexander Muthoot,Muthoot Finance  George Alexander Muthoot, Managing Director, Muthoot Finance

“As an NBFC deeply embedded in India’s household and MSME economy, we welcome the Union Budget 2026-27’s clear recognition of NBFCs as key enablers of credit delivery for Viksit Bharat, along with the proposed comprehensive review of the banking ecosystem. This reinforces the importance of diversified, last-mile lending models in expanding formal credit access across semi-formal and informal segments of the economy. Measures such as the Rs. 10,000 crore SME Growth Fund, deeper integration of TReDS with credit guarantee mechanisms, and initiatives to strengthen corporate bond markets are expected to meaningfully improve liquidity and financing options for MSMEs and small entrepreneurs.

At a macro level, the Budget reflects a fiscally disciplined framework that prioritises sustainable, long-term growth over short-term stimulus. The Government’s commitment to fiscal consolidation, evident in the reduction of the fiscal deficit to 4.3% of GDP and an increase in public capital expenditure to Rs. 12.2 lakh crore, provides a stable foundation for growth, particularly in an environment of global uncertainty.

The focus on Tier II and Tier III cities, rejuvenation of legacy industrial clusters, and technology-led compliance simplification aligns well with the operating realities of India’s informal and semi-formal economy. As a household-focused lender with deep roots across the country, we see this Budget as reinforcing the role of responsible, customer-centric NBFCs in supporting entrepreneurship, consumption-led growth and financial inclusion, while maintaining financial stability.”

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