Cabinet approves ₹10,000 crore commitment to set up SME Growth Fund for direct equity investment in small and medium enterprises
6 October 2026
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Government of India's commitment of ₹10,000 crore towards the establishment of the SME Growth Fund. The fund is meant for direct equity investment in small and medium enterprises. It targets growth capital for enterprises in manufacturing, services, technology and innovation-driven sectors. The Cabinet noted a structural gap in equity development capital for such enterprises. A majority of the funds is to go to small and medium manufacturing enterprises.
Fund size:
₹10,000 crore (Government of India commitment)
Mode:
Direct equity investment
Why it matters for exams: Equity-support schemes for MSMEs and Cabinet decisions on economy are regular exam material.
Kerala PSCUPSC
In plain words
Equity Ownership stake in a company — Money raised by selling a share of ownership rather than borrowing.