Government Unveils Major Financial Package for Industrial Units
In a significant economic intervention aimed at boosting domestic manufacturing, the Union Cabinet approved a SME Growth Fund with a corpus of ₹10,000 crore. The dedicated fund will provide patient equity support to small and medium enterprises operating across critical industrial clusters.
Chaired by the Prime Minister, the Cabinet designed the scheme to solve long-standing capital availability issues facing scaling enterprises. The scheme prioritizes manufacturing hubs situated in Tier-II and Tier-III cities to decentralize industrial growth.
Capital Allocation Framework and Operational Features
| Serial No. | Scheme Parameter | Policy & Operational Specifications |
| 1 | Total Approved Corpus | ₹10,000 Crore Equity Support Fund |
| 2 | Primary Target Sector | Small and Medium Manufacturing Enterprises |
| 3 | Geographic Focus | Industrial clusters in Tier-II and Tier-III cities |
| 4 | Nodal Implementation Agency | Small Industries Development Bank of India (SIDBI) |
| 5 | Financing Structure | Equity & Quasi-Equity Direct Instruments |
Strengthening Local Supply Chains and Domestic Exports
The fund addresses the venture capital deficit experienced by manufacturing firms outside major metro hubs. By offering equity capital without requiring immediate debt servicing, the initiative allows firms to invest in advanced machinery and sustainable technology.
Industry associations welcomed the approval, noting that access to risk capital will help domestic suppliers compete globally. Financial institutions expect deployment to begin by the upcoming quarter.
| Serial No. | Strategic Growth Objective | Anticipated Economic Impact |
| 1 | Equity Mobilization | Reduces high interest burden on growing manufacturing units |
| 2 | Cluster Modernization | Upgrades technology infrastructure in regional industrial parks |
| 3 | Job Creation | Generates skilled technical employment in regional urban centers |
| 4 | Export Readiness | Helps local SMEs meet international quality compliance standards |