The government on Tuesday approved a Rs 10,000-crore fund to set up the SME Growth Fund (SGF) to provide growth capital to small and medium enterprises and help create Indian companies capable of competing globally.
According to the government, the initiative, announced in the Union Budget 2026-27, seeks to address the gap in long-term equity capital available to small and medium enterprises, particularly those looking to expand operations, invest in technology, enter international markets and scale up manufacturing.
The government said existing funds provide equity support but largely focus on early-stage and micro enterprises.
Under the scheme, the government will provide an aggregate commitment of Rs 10,000 crore to an Alternative Investment Fund (AIF) established under the SGF framework. The fund will provide patient growth equity capital to high-potential SMEs with demonstrated business viability and scalability.
A majority of the fund’s allocation will be directed towards small and medium manufacturing enterprises. The fund will also consider enterprises operating in industrial clusters in Tier-II and Tier-III cities.
The government said the fund will enable SMEs to expand manufacturing capacity, adopt advanced technologies, scale operations, enter international markets, integrate into global value chains and undertake strategic investments.
The cabinet also approved the creation of a Special Purpose Vehicle (SPV) to bring greater coordination and integration to India’s transport and logistics infrastructure. The proposed entity, which will be called the Integrated Transport & Logistics Authority (ITLA), will serve as the apex body for integrated transport planning, research, project appraisal and monitoring, besides impact assessment of the completed works.
“The move is aimed at addressing long-standing gaps caused by fragmented planning and implementation across multiple ministries and agencies dealing with roads, railways, ports, shipping, aviation, waterways and urban mobility,” the Union Cabinet, Information & Broadcasting Minister Ashwini Vaishnaw said while briefing the media.
According to a government statement, ITLA is expected to improve the efficiency, sustainability and effectiveness of infrastructure development by promoting multimodal connectivity and coordinated decision-making.
