Union Cabinet to take up ₹10,000 crore SME Growth Fund, centralised infra authority
The Indian Union Cabinet is expected to approve a ₹10,000 crore SME Growth Fund and the creation of an Integrated Transport and Logistics Authority (ITLA). These initiatives aim to provide equity support to small businesses and centralize infrastructure planning.
Why it matters
These policy moves represent a significant government effort to streamline logistics and boost the SME sector, which is vital for India's economic growth.
The Union Cabinet on Tuesday (October 6, 2026) is likely to take up a proposal by the Ministry of Finance to set up a ₹10,000 crore SME Growth Fund, and a Ministry of Commerce proposal for the setting up of an Integrated Transport and Logistics Authority (ITLA), The Hindu has learnt.
According to a note sent out by the Cabinet Secretariat and reviewed by The Hindu , the SME Growth Fund will be “for direct equity investments in Small and Medium Enterprises (SMEs) to create future champions”.
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.
The SME Growth Fund is part of a three-pronged effort by the government to help small companies grow, involving equity support, liquidity measures, and professional support.
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