India, Oct. 6 -- The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the government's Rs.10,000 Cr SME Growth Fund (SGF) to offer growth credit capital to small and medium enterprises.

Announced in Budget 2026-27, the fund will invest in high-potential SMEs across manufacturing, services, technology, innovation-driven sectors and strategic value chains. A majority of the allocation of the fund will go towards manufacturing-focused enterprises.

The initiative aims to widen access to equity and liquidity for MSMEs and help promising Indian businesses scale into globally competitive companies.

The SGF is meant to fill the gap in growth capital for SMEs, as most existing funds focus on early-stage and micro enterprises...