Union Cabinet approves ₹10,000-cr SME growth fund to boost manufacturing
The Union Cabinet has approved a ₹10,000 crore SME Growth Fund to provide equity support for small and medium enterprises in manufacturing and technology sectors. This initiative aims to bridge the structural gap in growth capital and help Indian firms scale operations globally.
Why it matters
This funding is a strategic move to boost the manufacturing sector and support the expansion of SMEs, which are vital for India's economic growth.
The Union Cabinet on Tuesday (October 6, 2026) approved the proposal by the Ministry of Finance to commit ₹10,000 crore of central government funding for the setting up of a Small and Medium Enterprises (SME) Growth Fund in line with a proposal in Budget 2026.
The SME Growth Fund is “aimed at catalysing growth-oriented capital for India’s SMEs and enabling the emergence of champion Indian enterprises across manufacturing, services, technology, innovation-driven sectors, and strategic value chains”, the government said in a release following the Cabinet’s decision.
The Fund was first mentioned in Union Budget 2026, when Finance Minister Nirmala Sitharaman had spoken about it as a means to incentivise enterprises based on select criteria.
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