Equity Infusion into SIDBI:
The Union Cabinet has approved a Rs 5,000 crore equity infusion (over 3 years) into the Small Industries Development Bank of India (SIDBI) to enhance credit flow to Micro, Small, and Medium Enterprises (MSMEs).The infusion is projected to increase the number of MSME beneficiaries from 76.26 lakh (FY25) to 102 lakh by FY28, adding approximately 25.74 lakh new MSMEs.India’s ~6.9 crore MSMEs employ 30.16 crore people, averaging 4.37 persons per unit, with new beneficiaries expected to generate ~1.12 crore additional jobs by FY 2027–28.Additional capital infusion will help SIDBI maintain a strong capital to risk-weighted assets ratio (CRAR), as risk-weighted assets are likely to rise with expanded MSME lending.
