NEW DELHI, Dec. 29 -- India is likely to announce a Rs.2,000-crore technology upgradation scheme for small businesses in the 2026-27 budget, aimed at boosting the adoption of energy-efficient machinery, two people aware of the development said.

The technology upgradation scheme, proposed by the Union ministry of micro, small, and medium enterprises (MSME), and currently under discussion, will cover MSMEs with annual turnover of less than Rs.50 crore, offering them a 20% capital subsidy for purchase of energy-efficient machinery, smart manufacturing, and automation upgrades, said the first of the two persons cited earlier, both of whom spoke on the condition of anonymity.

A micro enterprise has an annual turnover of up to Rs.5 crore, a s...