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). The fund aims to provide direct equity investments and growth-oriented capital to Small and Medium Enterprises (SMEs) to help them scale up and emerge as champion enterprises across manufacturing, services, technology, innovation-driven sectors, and strategic value chains. The initiative addresses a structural gap in long-term risk capital for growth-stage SMEs, with a majority allocation directed toward manufacturing-focused enterprises and consideration for SMEs in Tier II and Tier III city industrial clusters.