Politics · India Bureau
Cabinet set to approve Rs 10,000 crore fund for SME growth
The government is expected to greenlight a major Rs 10,000 crore dedicated fund to support small and medium enterprises, according to official sources. The initiative forms part of a broader push to strengthen India's entrepreneurial ecosystem.
LSN India ·
The Cabinet is poised to give its approval to a Rs 10,000 crore SME Growth Fund, marking a significant commitment to bolstering the small and medium enterprise sector, sources familiar with the development indicated on Wednesday.
The fund represents a targeted intervention designed to address financing constraints and growth challenges faced by SMEs across India. Officials view the measure as critical to sustaining job creation and economic expansion amid evolving market conditions.
Parallel to the SME Growth Fund, the government also plans to allocate an additional Rs 2,000 crore to the Self-Reliant India Fund, which was established in 2021. The top-up aims to expand the scope and impact of the existing framework that supports domestic industries and manufacturing capabilities.
The dual investment signals the administration's intent to create a comprehensive support architecture for businesses navigating the post-pandemic economic landscape. Policy experts suggest the combined allocation could help unlock credit availability and facilitate expansion for enterprises struggling to access conventional banking channels.
Formal Cabinet approval for both initiatives is anticipated in the coming days, pending final clearance from the inter-ministerial review process, sources added.