Stories
Union Cabinet Approves Rs 10,000 Crore SME Growth Fund
- •The Union Cabinet allocated Rs 10,000 crore to establish the SME Growth Fund for direct investments in small and medium enterprises.
- •Announced in the Union Budget 2026-27, the fund aims to provide growth-oriented capital and create champion enterprises across various sectors.
- •The fund addresses a gap in growth-stage equity financing by offering long-term capital to established businesses with scaling potential.
- •The Cabinet also approved the setting up of an Integrated Transport and Logistics Authority to strengthen transport planning and research.
Key Questions Answered
The Union Cabinet allocated Rs 10,000 crore to establish the SME Growth Fund (SGF) to provide direct, growth-oriented equity capital for small and medium enterprises. Announced in the Union Budget 2026-27, the fund aims to help established SMEs expand manufacturing capacity, improve productivity, increase exports, and participate in global supply chains.
The Cabinet approved the setting up of the Integrated Transport & Logistics Authority (ITLA) as an apex body to strengthen research, planning, appraisal, monitoring, and impact assessment across transportation and logistics. It will prepare a comprehensive National Transport Master Plan with a horizon of 10 years or more covering roads, railways, shipping, and mobility.
The government previously introduced the PM Mudra Yojana (PMMY) in 2015 to offer institutional loans up to Rs 20 lakh for non-corporate, non-farm small and micro enterprises. Additionally, it launched the Trade Receivables e-Discounting System (TReDS) in 2017, an online invoice-discounting platform that helps SMEs convert trade receivables into liquid cash.
