Economy8 October 2026
Cabinet Approves Commitment to SME Growth Fund
On 6 October 2026, the Union Cabinet approved a government commitment of Rs.10,000 crore to the SME Growth Fund for direct equity investment in small and medium enterprises. The commitment will go to an Alternative Investment Fund under the SGF framework. It aims to provide patient growth capital to viable, scalable SMEs, with a majority allocation to manufacturing-focused enterprises. Unlike loans, equity capital involves ownership participation rather than scheduled debt repayment.
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Knowledge CheckWith reference to the SME Growth Fund approved by the Union Cabinet on 6 October 2026, consider the following statements:
- The government commitment is directed to an Alternative Investment Fund under the SGF framework.
- The fund aims to provide patient growth equity capital to high-potential SMEs.
- The majority allocation is planned for small and medium manufacturing-focused enterprises. Which statements are correct?