The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the creation of a ₹10,000 crore SME Growth Fund dedicated to supporting small and medium manufacturing enterprises situated in Tier-II and Tier-III cities. The strategic investment corpus aims to bridge persistent equity financing deficits, allowing emerging regional industrial units to scale manufacturing capacity and integrate modern robotics.
Operated through the Small Industries Development Bank of India alongside recognized alternative investment funds, the fund will provide patient risk capital to export-ready manufacturing ventures. The scheme prioritizes capital deployment toward high-potential sectors including light precision engineering, renewable components, specialty chemicals, and advanced defense subcontracting.
Industry bodies including FICCI and CII welcomed the initiative, highlighting that regional industrial enterprises have traditionally struggled to secure long-term equity beyond conventional high-interest collateralized debt. Government officials stated that the fund is structured to catalyze an estimated ₹40,000 crore in private co-investments over the next five operational years.
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Sources:
https://indianexpress.com/article/education/today-news-headlines-for-school-assembly-08-october-2026-delhi-andhra-announces-drought-across-21-district-cabinet-approves-rs-10000-crore-sme-fund-10910892/