Union Home Minister Amit Shah on Wednesday welcomed the Union Cabinet’s approval of the Rs 10,000 crore SME Growth Fund, describing it as a move aimed at giving fresh impetus to India’s small and medium enterprises.
In a post on X, Shah said the fund would provide direct equity investment to SMEs and support their expansion, adoption of new technologies and entry into global markets. He further said the initiative would help strengthen the sector and create more employment opportunities.
The Minister congratulated those contributing to the growth of the SME sector.
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 is to address the shortage of long-term growth capital faced by expanding businesses, particularly in the manufacturing sector. It will focus on eligible enterprises operating in Tier-II and Tier-III clusters.
By providing equity funding, the initiative is expected to help businesses increase production, invest in advanced technology and expand their presence in international markets without depending solely on conventional debt.
Greater investment in smaller industrial clusters could support the development of manufacturing ecosystems beyond major metropolitan centres while creating jobs and improving productivity.
The SME Growth Fund forms part of the government’s broader economic policy and its stated objective of strengthening Indian enterprises as part of the Viksit Bharat 2047 vision.
The initiative will likely support businesses in moving towards larger-scale, technology-driven operations and strengthen the contribution of SMEs to manufacturing, employment, innovation and long-term economic growth.
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