Union Cabinet approves Rs.10,000-cr SME Growth Fund

The Union Cabinet has approved the establishment of an SME Growth Fund (SGF) with an aggregate commitment of INR 10,000-Cr. The government plans to deploy this capital through an Alternative Investment Fund (AIF). SGF aims to address the deficiency of long-term equity capital for small and medium enterprises (SMEs), specifically targeting firms that intend to expand their manufacturing capacity, invest in advanced technology, scale operations, or enter international markets.The new initiative is designed to provide patient growth equity capital to high-potential companies with proven scalability and business viability. Priority will be given to SMEs situated in industrial clusters in Tier-II and Tier-III cities.