India’s MSME credit ecosystem entered 2026 with decisive momentum. January saw rapid shifts in risk assessment, alternate data usage, co-lending structures, and digital credit rails—setting the stage for the Union Budget 2026–27, released on 1st February, which formalised many of these directions at a policy level.

In this edition of Nayi Tarang @X, we decode what moved during the month, how the Budget reforms reinforce these shifts, and what it means for MSMEs, NBFCs, banks, and fintech platforms shaping the next phase of credit.