Cabinet approves Rs 10,000 crore SME Growth Fund for direct equity investments in SMEs
Executive Brief • Key Highlights
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- ✓The Union Cabinet on Tuesday approved Rs 10,000 crore for the SME Growth Fund to provide equity investments.
- ✓This initiative aims to help small and medium businesses expand and adopt new technology.
- ✓By targeting manufacturing and services, the fund will support growth in Tier II and Tier III cities too.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Economic Times
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
The SME Growth Fund aims to provide long-term growth capital and address financing gaps for these businesses. By targeting manufacturing and services sectors, the initiative will facilitate expansion and enhance competitiveness. Strategic investments in Tier II and Tier III cities will foster balanced regional development as well.
The Union Cabinet, on Tuesday, approved the government's commitment of Rs 10,000 crore towards the establishment of the SME Growth Fund (SGF) aimed at catalysing growth-oriented capital for India's Small and Medium Enterprises (SMEs) and enabling the emergence of champion Indian enterprises across manufacturing, services, technology, innovation-driven sectors, and strategic value chains. Union Minister Nirmala Sitharaman announced it during Union Budget 2026-27 as part of the initiatives strengthening the MSME sector.
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Economic Times
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