Cabinet approves Rs 10,000 crore SME Growth Fund for small businesses
The Union Cabinet approved a Rs 10,000 crore SME Growth Fund on Tuesday to support small and medium enterprises through direct equity investments aimed at creating future champions in the sector. According to a Cabinet Secretariat note, the Fund will facilitate equity support for SMEs meeting select criteria, as first mentioned in Union Budget 2026 by Finance Minister Nirmala Sitharaman.
The SME Growth Fund is part of a three-pronged government effort to help small companies grow, encompassing equity support, liquidity measures, and professional support. This comprehensive approach aims to address multiple challenges faced by micro, small, and medium enterprises seeking to scale operations and compete in the market.
The Cabinet also approved a separate proposal from the Ministry of Commerce to establish an Integrated Transport and Logistics Authority (ITLA), tentatively named the Gati-Shakti Transport and Logistics Planning and Research Authority. The ITLA will be set up as a non-profit special purpose vehicle under the Companies Act 2013, owned by the Union Government and functioning under Cabinet Secretariat oversight. Its primary objective is to centralise and systematise infrastructure planning and implementation across transportation and logistics domains while removing silos between Ministries.
