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Prime Minister Narendra Modi on Tuesday said the Cabinets decision to establish a Rs 10,000 crore SME Growth Fund would give a major boost to the MSME sector by helping firms scale up, adopt advanced technologies and expand into global markets.
Big boost for the MSME sector! PM Modi said in a post on X, calling the decision a major step towards creating the next generation of Indian business leaders. It offers the platform for SMEs to scale up, adopt advanced technologies, expand manufacturing, enter global markets and integrate with global value chains, the Prime Minister said. The Union Cabinet earlier on Tuesday approved a government commitment of Rs 10,000 crore towards the SME Growth Fund, which will provide direct equity investments to growth-oriented small and medium enterprises. The fund is aimed at addressing the shortage of long-term risk capital available to SMEs seeking to expand capacity, invest in technology, undertake strategic investments and access overseas markets. A majority of the funds allocation will be directed towards manufacturing-focused small and medium enterprises, while businesses operating in industrial clusters in Tier-II and Tier-III cities will also be considered. The government will provide an aggregate commitment of Rs 10,000 crore to an Alternative Investment Fund established under the SME Growth Fund framework. Briefing reporters after the Cabinet meeting, Union Minister Ashwini Vaishnaw said the fund was also designed to help Indian SMEs tap opportunities emerging from Indias recent Free Trade Agreements. The initiative is expected to complement existing credit-support measures by providing patient equity capital to companies with demonstrated viability and potential to scale. (ANI)
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