New Delhi: The government Tuesday committed Rs 10,000 crore to establish an SME Growth Fund for direct equity investments in Small and Medium Enterprises to create future champions.
The decision was taken at the Union Cabinet meeting headed by Prime Minister Narendra Modi.
The SME Growth Fund (SGF) will catalyse growth-oriented capital for India’s small and medium enterprises (SMEs) and create champion Indian enterprises across manufacturing, services, technology, innovation-driven sectors, and strategic value chains.
The Cabinet has approved a “commitment of Rs 10,000 crore towards establishment of the SME Growth Fund for direct equity investments in Small and Medium Enterprises to create future champions”, an official release said.
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The fund was announced in the Union Budget 2026-27.
Under the initiative, the government will provide an aggregate commitment of Rs 10,000 crore to the Alternative Investment Fund (AIF) established under the SGF framework.
Information and Broadcasting Minister Ashwini Vaishnaw provided the details of the fund.
By providing long-term capital, the initiative will enable Indian SMEs to scale operations, invest in technology and manufacturing capacity, expand into international markets, integrate into global value chains, and undertake strategic investments.