Centre launches ₹10,000 crore SME Growth Fund to boost small business expansion

The Centre has established a ₹10,000 crore SME Growth Fund to address financing challenges faced by small and medium enterprises. The fund aims to provide equity capital to eligible businesses, enabling them to scale operations and modernise infrastructure.

The initiative targets a key funding gap in the MSME sector, which has historically struggled to access affordable capital for growth. By channeling equity investment rather than debt, the fund seeks to reduce financial stress on small businesses while preserving balance sheets.

The scheme is designed to support MSMEs in three key areas: expanding production capacity, adopting new technologies, and strengthening competitiveness in global markets. Officials hope the measure will enhance the productive base of India's small business ecosystem and create employment opportunities.