India, Oct. 6 -- The Union Cabinet on Tuesday approved the Government of India's commitment of Rs 10,000 crore towards the establishment of the SME Growth Fund (SGF), aimed at providing growth-oriented capital to India's small and medium enterprises (SMEs) and facilitating the emergence of Indian champions across manufacturing, services, technology, innovation-driven sectors and strategic value chains.

The initiative is part of the announcements made in the Union Budget 2026-27 to strengthen the MSME ecosystem by improving access to equity, liquidity and professional support.

While several existing funds provide equity support to businesses, most focus on early-stage enterprises and primarily cater to micro enterprises. A structural gap...