Public SystemsINVESTApproved
India-wide
Union Cabinet approved ₹10,000 crore commitment to establish SME Growth Fund
6 Oct 2026
The Union Cabinet approved the government’s aggregate commitment of ₹10,000 crore to establish the SME Growth Fund (SGF) via an Alternative Investment Fund (AIF) framework. The SGF is intended to provide patient growth equity to viable SMEs, with a majority allocation planned for manufacturing-focused SMEs and consideration for firms in industrial clusters in Tier-II and Tier-III cities.
Why it matters
If implemented as described, the fund would increase access to growth-stage equity capital for SMEs to expand manufacturing capacity, adopt technology, and scale exports beyond what early-stage schemes typically support.
Union Cabinet of IndiaGovernment of India