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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteThe Union Cabinet approved a Government of India commitment of ₹10,000 crore toward establishing the SME Growth Fund on 6 October 2026. The fund is intended to provide patient growth equity to viable, scalable Indian small and medium enterprises—not to distribute the full amount immediately or open a direct application window.
What the Cabinet approved
The official Cabinet announcement says the government will provide an aggregate ₹10,000 crore commitment to an Alternative Investment Fund (AIF) established under the SME Growth Fund framework. The approval is for the commitment toward setting up the fund; it is not evidence that ₹10,000 crore has already been invested in businesses. The Cabinet announcement describes the fund as a response to a gap in growth-stage equity for SMEs.
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Unlike a conventional loan, grant or credit guarantee, the SGF is described as an equity-investment vehicle. Its purpose is to support firms that need capital to grow, while the official release does not spell out the eventual investment terms.
Which businesses are the stated priority?
The fund is aimed at high-potential SMEs with demonstrated business viability and scalability. The Cabinet announcement identifies uses including scaling operations, adopting technology, increasing manufacturing capacity, expanding internationally, integrating into global value chains and making strategic investments.
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Manufacturing-focused small and medium enterprises are slated to receive the majority allocation. SMEs operating in industrial clusters in Tier II and Tier III cities will also be considered. These are stated priorities, not a complete eligibility test or a promise that every business in those categories will receive funding.
What counts as a small or medium enterprise?
A Press Information Bureau backgrounder gives the general classification thresholds effective from April 2025. These figures help explain the terms “small” and “medium,” but they do not establish eligibility for this particular fund; the announcement has not published SGF-specific rules.
| Classification | Investment in plant and machinery or equipment | Annual turnover |
|---|---|---|
| Small enterprise | Up to ₹25 crore | Up to ₹100 crore |
| Medium enterprise | Up to ₹125 crore | Up to ₹500 crore |
These are general thresholds reported by the Press Information Bureau backgrounder, not a substitute for future fund guidelines.
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The SME Growth Fund was proposed in the Union Budget 2026–27 as part of a broader three-part approach to MSMEs: equity, liquidity and professional support. The Budget release also referred to a separate ₹2,000 crore top-up for the Self-Reliant India Fund, aimed at micro enterprises, as well as measures involving TReDS and professional institutions. Those are distinct measures; the SGF is the growth-equity component described in the Cabinet announcement. The Budget release sets out that wider context.
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Can an SME apply now?
The official announcement and backgrounder reviewed for this article do not publish an application process or say that applications are open. They also do not specify the complete eligibility criteria, selection process, investment ticket sizes, fund manager, deployment schedule, or whether investments will be made directly or through sub-funds. Businesses should wait for official SGF guidelines or a scheme notification before relying on assumptions about access or terms.
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