Cabinet approves Rs 10,000 crore SME Growth Fund: What it means for small businesses
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Union Cabinet approved Rs 10,000 crore to create an SME Growth Fund today.
- ✓This fund provides equity capital to promising small and medium businesses, helping them scale and compete globally.
- ✓The government said this initiative fills a gap in long-term risk capital, supporting innovation and growth for Indian entrepreneurs.
Story at a Glance
- Category
- BUSINESS
- Reported By
- DNA
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
In a major boost to Small and Medium Enterprises, the Cabinet has approved Rs 10,000 crore to create an SME Growth Fund (SGF). The aim is to give equity capital, not just loans, to promising small and medium-sized businesses so they can grow into larger, globally competitive companies.
What is the SME Growth Fund?
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, today approved the Government of India's commitment of Rs.10,000 crore as part of the holistic set of announcements that were made in Union Budget 2026-27, focusing on providing equity, liquidity and professional support for the MSME ecosystem as a whole.
The government has made a commitment of Rs 10,000 crore to the Small and Medium Enterprises (SMEs) with a proven business model and potential to scale. The SMEs will receive it through an Alternative Investment Fund (AIF) set up under the SME Growth Fund framework. The fund will make direct equity investments in selected SMEs.
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DNA
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