New Delhi, 06 October (H.S.): The Central government will establish a Small and Medium Enterprises Growth Fund (SGF), through which it will make Rs 10,000 crore available via various investment funds. The initiative is aimed at facilitating easier access to capital for small and medium enterprises.

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Monday approved the government’s commitment in this regard. Union Minister for Information and Broadcasting Ashwini Vaishnaw announced the decision at a press conference held at the National Media Centre.

Vaishnaw said that the bulk of existing equity support is currently directed towards early-stage enterprises and micro enterprises. The proposed fund is intended to bridge the growth-capital gap faced by viable small and medium enterprises. The SGF will focus particularly on manufacturing-oriented small and medium enterprises operating in Tier-II and Tier-III industrial clusters.

The fund will support enterprises in scaling up their operations, adopting new technologies and gaining access to global markets. The SGF is expected to promote expansion, enhance productivity and strengthen the export competitiveness of these enterprises.

It may be recalled that the initiative was part of the broader announcements made in the Union Budget 2026-27. These measures were aimed at providing greater equity, easier access to capital and professional support to the MSME ecosystem as a whole.

---------------

Hindusthan Samachar / Jun Sarkar