Finance Minister Nirmala Sitharaman unveiled a Rs 10,000 crore SME Growth Fund during the Union Budget 2026‑27, aiming to inject equity into micro, small and medium enterprises across India.
The fund will offer selective equity support, with incentives tied to performance criteria, and is part of a three‑fold strategy to accelerate growth, enhance competitiveness and build resilience against global shocks.
Alongside the fund, the government proposed an Integrated Transport and Logistics Authority to streamline freight movement and reduce bottlenecks, a move that could cut logistics costs for small firms by up to 15 per cent, according to a study by the Ministry of Commerce.
Other measures in the budget include a Rs 2,000 crore boost to the Self‑Reliant India Fund, over Rs 7 lakh crore in TReDS liquidity, and professional support programmes involving ICAI, ICSI and ICMAI to create ‘Corporate Mitras’ for Tier‑II and Tier‑III towns.
The cabinet, scheduled to meet next week, will decide on both proposals. Supporters say the initiatives will lift the incomes of thousands of small‑business owners, while critics warn of implementation challenges.
Once approved, the fund will be managed by the Ministry of Finance in partnership with the Small Industries Development Bank of India, with a rollout expected to begin in Q3 2026.