Cabinet approves ₹10,000 crore SME Growth Fund commitment
The Cabinet has approved a ₹10,000-crore government commitment to provide long-term growth equity for scalable small and medium enterprises.
AI-generated symbolic illustration for the SME Growth Fund story; not a photograph of an actual event. Illustration: OpenAI / MYNILGIRIS.
The Union Cabinet has approved a Government of India commitment of ₹10,000 crore for a new SME Growth Fund designed to provide long-term growth equity to small and medium enterprises.
The fund addresses a gap between early-stage equity support—much of which is directed at micro enterprises—and the patient capital needed by established, scalable SMEs. It is intended to help eligible firms expand capacity, adopt advanced technology, enter overseas markets, join global value chains, make acquisitions and undertake strategic investments.
Most allocations are expected to go to manufacturing-focused small and medium enterprises. Businesses in services, technology, innovation-driven sectors and strategic value chains may also be considered, including firms located in industrial clusters in Tier-II and Tier-III cities.
The government will make its aggregate ₹10,000-crore commitment to an Alternative Investment Fund established under the SME Growth Fund framework. The scheme was outlined in paragraph 28 of the Union Budget 2026–27 as part of a broader package of equity, liquidity and professional support for the MSME ecosystem.
The Press Information Bureau published the Cabinet decision at 3:12 PM IST on 6 October 2026.
