Why it is in the news
On 6 October 2026, the Union Cabinet approved a Ministry of Finance proposal to commit ₹10,000 crore of central funding to set up the Small and Medium Enterprises (SME) Growth Fund (SGF), announced in the Union Budget 2026-27. The fund will provide patient growth equity to high-potential small and medium enterprises with demonstrated viability and scalability, with a majority of investments directed to manufacturing SMEs.
The exam angle
Issue: India's enterprise structure lacks a strong layer of mid-sized firms because small and medium enterprises cannot find long-term risk capital to scale.