Union Home Minister Amit Shah announced the Union Cabinet’s approval of the ₹10,000 crore SME Growth Fund, a major initiative aimed at strengthening India’s small and medium enterprises and supporting their expansion.
The SME Growth Fund, approved by the Union Cabinet today, infuses new energy into our vibrant small and medium enterprises through a direct equity investment of ₹10,000 crore.
It will accelerate Modi Ji’s vision of fortifying the sector by supporting its expansion, technology adoption, and entry into global markets to create more employment opportunities. Congratulations to everyone contributing to the growth of this vital sector.
— Amit Shah (@AmitShah) October 6, 2026
The fund will provide direct equity investment to eligible small and medium enterprises, particularly manufacturing companies operating in Tier-II and Tier-III clusters.
The government expects the initiative to address a key challenge faced by growing businesses: limited access to long-term growth capital.
The fund will support enterprises as they expand production, adopt advanced technologies and enter global markets.
By improving access to equity capital, the government aims to help promising businesses scale without relying excessively on traditional debt financing.
The initiative also seeks to strengthen manufacturing ecosystems beyond India’s major metropolitan centres.
Greater investment in Tier-II and Tier-III clusters could help businesses expand their operations, create new employment opportunities and improve productivity in emerging industrial regions.
HM Amit Shah highlighted the fund as part of the government’s broader economic vision under Prime Minister Narendra Modi.
Official campaign material positions the initiative as a step towards building a stronger enterprise ecosystem and advancing the government’s Viksit Bharat 2047 objective.
The SME Growth Fund could therefore play a significant role in helping Indian enterprises move from small-scale operations to larger, technology-driven businesses.
By combining growth capital with a focus on manufacturing, innovation and global market access, the initiative aims to strengthen the contribution of SMEs to employment, productivity and India’s long-term economic growth.
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