Cabinet approves ₹10,000 crore to establish SME growth fund
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- ✓The Cabinet on Tuesday approved ₹10,000 crore to establish the SME Growth Fund.
- ✓This fund aims to help small and medium enterprises scale their operations and innovate.
- ✓Minister Ashwini Vaishnaw said, "The SGF is designed to address this critical financing gap by providing patient growth equity capital to high-potential SMEs."
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The Cabinet on Tuesday has approved ₹10,000 crore towards the establishment of the SME Growth Fund (SGF) aimed at catalysing growth-orientated capital for India's small and medium enterprises (SMEs) and enabling the emergence of champion Indian enterprises.
These are across manufacturing, services, technology, innovation-driven sectors, and strategic value chains as per Budget 2026-27. This was part of the holistic set of announcements that were made in the Budget, focusing on providing equity, liquidity and professional support for the MSME ecosystem as a whole.
There are existing funds which provide equity support, but the majority of them focus on early-stage enterprises and cover majorly microenterprises. A structural gap exists for equity growth capital for SMEs, Ashwini Vaishnaw, Minister for Electronics and Information Technology, said.
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