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MSMEs want expanded credit guarantee scheme in Union Budget to upgrade their units
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Nandita Vijayasimha, Bengaluru
January 17 , 2026
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The pharmaceutical sector is looking up to the Union finance minister Nirmala Sitharaman to expand the scope of credit guarantee schemes in the upcoming Union Budget 2026 to help micro, small and medium enterprises (MSMEs) undertake the much-needed technological and infrastructure upgrades. This would enable easier access to collateral-free credit allowing smaller pharma units to modernise manufacturing facilities, comply with evolving quality and regulatory standards, and strengthen their competitiveness in both domestic and export markets.
Enhanced credit guarantees akin to ECLGS (Emergency Credit Line Guarantee Scheme) extensions, plus R&D tax credits for innovations in probiotics and gut health, will empower MSMEs to automate and tap markets in the Middle East and Southeast Asia, positioning nutraceuticals as a cornerstone of Viksit Bharat by 2047, said Suresh Garg, founder & CMD of Zeon Lifesciences.
Shweta Rai, managing director India and Country Division Head South Asia, Bayer Pharmaceuticals said, "Last year’s Union Budget signalled important progress toward improving patient access, particularly through duty exemptions on life-saving medicines and an increased on medical education. This progress is also reflected in the steady rise in public healthcare spending, with the share of government health expenditure in total health spending increasing over the recent years.”
As we look ahead to the Union Budget 2026, we hope that this momentum is sustained by strengthening policy and funding support for pharmaceutical R&D and innovation. With diseases on the rise, budgetary support for screening, diagnostics, and healthcare infrastructure will be critical to enable early diagnosis and long-term disease management. Measures that improve affordability such as rationalisation of duties and sustained public health investment can help ensure the translation of scientific progress into better patient outcomes. We look forward to the government building on these steps to further strengthen India’s healthcare ecosystem in the years ahead, said Rai.
Yashna Garg, founder, Yugap Wellness noted that from a Union Budget 2026 standpoint, MSME-led D2C brands- particularly women-led consumer businesses need targeted fiscal support. Rationalising GST on wellness and nutrition products to the 5–12% bracket, expanding the MSME Credit Guarantee Scheme beyond Rs. 5 crore, and enabling easier access to affordable working capital through lower-interest, faster-disbursal credit lines for women entrepreneurs would significantly ease cash-flow pressures. Additionally, a 2–3% interest subvention and a dedicated budgetary allocation for digital-first women-led MSMEs- covering marketing, compliance, and scale-up costs can directly accelerate sustainable growth."
Mithun Majumdar, CEO, 750AD Group stated that tax incentives for R&D, innovation in preventive care, and digital health platforms would help accelerate product development and affordability. Additionally, policies aimed at reducing GST on essential wellness and healthcare products would benefit both manufacturers and consumers. A forward-looking budget that supports integrated healthcare, innovation, and accessibility will play a crucial role in improving public health outcomes and fostering sustainable growth in the healthcare ecosystem, said Majumdar.
Koji-Wada, managing director, Fujifilm India, said “Continued emphasis on high-quality manufacturing, technology-led innovation, and skills development can help strengthen India’s industrial depth while supporting stable and inclusive economic growth. Thus, initiatives and budget allocation that support this agenda will be welcomed.”
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