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News: The Union Cabinet approved the Government of India’s commitment of Rs.10,000 crore towards the establishment of the SME Growth Fund (SGF).
About SME Growth Fund
- The SME Growth Fund is designed as a direct equity investment fund.
- Announced by: It has been announced by Ministry of Finance.
- Fund allocation: It will provide an aggregate commitment of Rs.10,000 crore to the Alternative Investment Fund (AIF) established under the SGF framework.
- Aim: It aimed at catalysing growth-oriented capital for India’s Small and Medium Enterprises (SMEs) and enabling the emergence of champion Indian enterprises across manufacturing, services, technology, innovation-driven sectors, and strategic value chains.
- It will provide patient equity capital to high-potential SMEs with demonstrated business viability and scalability.
- Strategic Focus of the Fund:
- Manufacturing at the Core: A major share of the SME Growth Fund’s allocations will be directed towards small and medium manufacturing-focused enterprises.
- It is intended to support firms seeking to expand manufacturing capacity, adopt advanced technologies, improve productivity and strengthen export competitiveness.
- Extending Growth to Industrial Clusters: It will also consider SMEs operating in industrial clusters in Tier-II and Tier-III cities.
- This is expected to support balanced regional industrial development, strengthen local supply chains and generate quality employment opportunities.
- Manufacturing at the Core: A major share of the SME Growth Fund’s allocations will be directed towards small and medium manufacturing-focused enterprises.
- It is expected to improve scale, productivity, and strengthen export competitiveness by enabling manufacturing enterprises to expand capacity, adopt advanced technologies and achieve greater scale.
