Credit Demand From SMEs, Manufacturing To Pick Up
FinTech BizNews Service
Mumbai, 1 February 2026: Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget 2026-27 in Parliament on Sunday 1 February 2026, said that the Government led by Prime Minister Narendra Modi, has decisively and consistently chosen action over ambivalence, reform over rhetoric and people over populism.
Jio Credit, an NBFC and a wholly-owned subsidiary of Jio Financial Services, focuses on digital-first, secured lending solutions for retail and corporate customers, including loans against securities, property, and merchant/vendor financing.
Kusal Roy, Managing Director & Chief Executive Officer, Jio Credit, believes:
"From the point of view of the NBFC sector, I expect this progressive Budget to have a positive impact on credit demand from SMEs and manufacturing sectors. In addition, there will be substantial employment generation and infrastructure creation in the CERs, which will further encourage offtake in retail credit. The FM has also taken steps to upgrade TREDS by providing credit guarantee support, a move that will enhance confidence for SMEs on TREDS.
The Budget aims to bolster the manufacturing sector in general, and the SME sector in particular, with a clear push to derisk our economy from the impact of tariffs. Seven critical manufacturing sectors including pharmaceuticals, semiconductors, rare-earths, chemicals, capital goods, tool-production, container manufacturing and the textile sector have received substantial incentives. Additionally, the rejuvenation of 200 legacy industrial clusters will also provide a strong fillip to industries."
Mr. Bhupinder Singh, Founder, InCred Group, feels:“This Budget has many positive structural elements and reflects a long-term growth mindset.
The strong push on infrastructure, domestic manufacturing and the technology ecosystem can meaningfully strengthen India’s industrial and innovation base. At the same time, the sharp increase in STT on futures and options has understandably unsettled markets and could weigh on trading volumes at a delicate moment. Predictability and active participation are vital for deep capital markets, so ongoing engagement between government and market stakeholders will be key.”
Mr. Arvind Kapil, MD and CEO, Poonawalla Fincorp, states:
“The Union Budget reflects a clear and pragmatic understanding of India’s growth priorities as the country advances towards Viksit Bharat. It underscores the growing importance of NBFCs in India’s financial ecosystem, with measures aimed at strengthening their role in credit delivery and market development. By combining fiscal discipline with a strong push to MSMEs, manufacturing and services, the Budget lays the foundation for sustained, broad-based economic momentum.”
