Constitutional Morality Beyond the Budget: MSMEs, Daily Livelihood, and the Limits of GrowthLed Policy

Micro, Small and Medium Enterprises (MSMEs) constitute the backbone of the Indian economy. Official government data shows that MSMEs contribute approximately 29.2% of India’s Gross Domestic Product, account for nearly 45% of manufacturing output, and provide employment to over 11 crore persons. Despite this centrality, fiscal policy has historically approached MSMEs primarily as recipients of credit rather than as constitutional stakeholders in distributive justice and livelihood security. This paper critically examines MSME-related measures in the Union Budget 2026–27, with particular focus on the newly announced ₹10,000 crore MSME Growth Fund, through a comparative analysis with the FY 2025–26 Budget. It argues that despite more than eleven years of uninterrupted governance by a single political dispensation, persistent structural deficiencies facing MSMEs remain unaddressed. The paper concludes that MSME policy is fiscally visible but constitutionally incomplete, failing to translate budgetary intent into everyday economic security for MSME households.