Centre approves ₹10K-crore SME growth fund
The Union cabinet on Tuesday approved a ₹10,000 crore fund to provide equity support to promising small and medium enterprises, ahead of the 57th GST Council meeting that is expected to consider major process reforms for businesses, particularly micro, small and medium enterprises (MSMEs), officials aware of the matter said
The Union cabinet recently approved a ₹10,000 crore fund aimed at providing equity support to promising small and medium enterprises (SMEs) ahead of an upcoming GST Council meeting. This initiative, proposed in the Union budget, is designed to bridge the financing gap faced by SMEs in scaling up, innovating, expanding overseas, adopting advanced technologies, and undertaking acquisitions.
The SME Growth Fund (SGF) will provide growth capital to enterprises in various sectors, including manufacturing, services, technology, and innovation-driven areas. Finance Minister Nirmala Sitharaman emphasized the creation of "Champion MSMEs" through equity support, aiming to incentivize enterprises based on select criteria. The government highlighted that while several funds provide equity support, they primarily focus on early-stage businesses, largely Micro enterprises, and a structural gap exists for equity growth capital in Small and Medium Enterprises (SMEs).
The GST Council, chaired by Sitharaman, is expected to meet in New Delhi to consider business-friendly reforms.
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