Cabinet approves 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

The Union Cabinet has approved the Government of India’s commitment of Rs. 10,000 crore to establish the SME Growth Fund (SGF) for direct equity investments in Small and Medium Enterprises. The initiative aims to provide patient growth equity capital to high-potential SMEs to bridge the structural gap in equity growth capital for enterprises seeking to scale, adopt advanced technologies, expand internationally, and transform into industry leaders. The fund will direct majority allocation toward small and medium manufacturing-focused enterprises, including those in industrial clusters in Tier II and Tier III cities, supporting balanced regional development and employment generation.