New Delhi, Oct. 6 -- The Union Cabinet on Tuesday approved a Rs 10,000 crore commitment to establish an SME Growth Fund (SGF) aimed at providing direct equity investments to small and medium enterprises and helping build future Indian business champions. The decision was taken at a meeting chaired by Prime Minister Narendra Modi. Information and Broadcasting Minister Ashwini Vaishnaw briefed reporters on the initiative.
The fund, announced in the Union Budget 2026-27, will provide growth-oriented capital to SMEs operating in manufacturing, services, technology, innovation-led industries and strategic value chains.
Under the framework, the government will commit Rs 10,000 crore to an Alternative Investment Fund (AIF) set up under the SGF.
The initiative is intended to provide SMEs with long-term capital to expand their operations, increase manufacturing capacity and adopt new technologies. It is also expected to help businesses enter international markets, become part of global supply chains and make strategic investments.
According to an official release, the fund will support the creation of Indian enterprises capable of growing into larger and globally competitive companies.
The government expects the investment mechanism to help address the capital needs of growth-oriented SMEs while supporting expansion across sectors that are important to India's economic and industrial development.
Published by HT Digital Content Services with permission from Millennium Post.