SME Growth Fund:
The Union Cabinet approved the Government of India’s commitment of Rs.10,000 crore towards the establishment of the SME Growth Fund (SGF).
- SME Growth Fund is aimed at catalysing growth-oriented capital for India’s Small and Medium Enterprises (SMEs).
- It enables the emergence of champion Indian enterprises across manufacturing, services, technology, innovation-driven sectors, and strategic value chains.
- It is envisioned as a transformational instrument to support enterprises at critical inflection points in their growth journey.
- It is designed as a direct equity investment fund 10,000 crore and will operate in the form of Alternative Investment Fund (AIF) established under the SGF framework.
- Strategic Focus of the SME Growth Fund:
- A major share of the SME Growth Fund’s allocations will be directed towards small and medium manufacturing-focused enterprises.
- It will consider SMEs operating in industrial clusters in Tier-II and Tier-III cities.
- It is intended to support firms seeking to expand manufacturing capacity, adopt advanced technologies, improve productivity and strengthen export competitiveness.
- This is expected to support balanced regional industrial development, strengthen local supply chains and generate quality employment opportunities.
