The union government has approved equity support of INR 5,000 Cr into Small Industries Development Bank of India (SIDBI) to enhance credit availability to MSMEs and startups. The government will infuse the fresh capital in three tranches through the Department of Financial Services (DFS). The first tranche will be worth INR 3,000 Cr and is set to be released in FY26 at a book value of INR 568.65 per share. The remaining two tranches, of INR 1,000 Cr each, will be disbursed in FY27 and FY28 at the same book value at the end of the previous fiscal year. The Centre expects this capital infusion to provide financial aid to an additional 25.74 Lakh MSMEs, taking the total beneficiaries to 1.02 Cr by FY28, up from 76.26 Lakh beneficiaries recorded at the end of FY25. The projected impact on employment through this fund infusion is also significant. As per the government, the added beneficiaries will prop employment generated through MSMEs to 1.12 Cr by the end of FY28. This projection is based on central government data highlighting that 30.2 Cr Indians are employed by 6.9 Cr MSMEs currently, at an average of 4.37 persons per enterprise. The MSME sector is… Read MoreInc42 Media
