Rs 10,000 Crore SME Growth Fund Likely To Get Cabinet Nod: Sources
Approval could improve funding access for smaller businesses, with indirect implications for lenders and companies whose demand depends on SME investment.
6 Oct 2026 · NDTV Profit
Alongside the SME Growth Fund, Sitharaman proposed adding Rs 2,000 crore to the Self-Reliant India Fund, established in 2021.
The analysis
Sources cited by NDTV Profit indicate that a Rs 10,000 crore SME Growth Fund is likely to receive Cabinet approval. Alongside that proposed fund, Sitharaman has proposed a further Rs 2,000 crore for the Self Reliant India Fund, which was established in 2021. The available details do not specify the timing of a Cabinet decision, the structure of the new fund, its eligibility rules, investment instruments or deployment schedule. It is also unclear whether the additional allocation to the existing fund will be considered in the same approval process.
For Indian equities, the main transmission channel would be easier access to growth capital for smaller enterprises, potentially supporting investment, hiring and orders across capital goods, industrials, logistics and business services. Listed banks and non banking finance companies with meaningful SME loan books may also be exposed through credit demand and borrower quality, although the fund's instruments could determine how direct that effect is. A formal Cabinet decision, detailed eligibility rules, a deployment timetable and evidence of actual commitments would support this reading. Delays, restrictive terms, weak take up or limited additional lending would weaken it.