SME Growth Fund: What Indian SMEs Should Check Now
The Union Cabinet has approved the ₹10,000 Cr SME Growth Fund (SGF), which will provide growth capital to small and medium enterprises.
Announced in Budget 2026-27, the SGF will commit ₹10,000 Cr to alternative investment funds (AIFs), which will subsequently invest in high-potential SMEs. The fund is intended to address the growth-capital gap faced by businesses that have moved beyond the focus of funds serving early-stage and micro enterprises.
Who the SME Growth Fund affects
The fund will invest across manufacturing, services, technology, innovation-driven sectors and strategic value chains. Most of its allocation will go to manufacturing-focused SMEs, while businesses in industrial clusters across Tier II and Tier III cities are also within its stated scope.
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The government’s commitment is routed through AIFs rather than directly to SMEs.
Primary source
Read the primary source on the Cabinet approval of the SME Growth Fund.
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