The Centre will launch a dedicated INR 10,000 Cr fund for small and medium enterprises (SMEs) to create “future champions”, finance minister Nirmala Sitharaman said in Budget 2026-27 speech. “I propose to introduce a dedicated INR 10,000 Cr SME Growth Fund to create future champions, incentivising enterprises based on select criteria,” Sitharaman said while presenting her ninth Budget. The FM also announced that the Centre will top up the Self-Reliant India (SRI) Fund, launched in 2021, with INR 2,000 Cr to continue to support MSMEs and provide them access to risk capital. Notably, as part of INR 50,000 Cr equity infusion in MSMEs announced through Fund of Funds under the ‘Aatmanirbhar Bharat’ package, the Centre set up the INR 50,000 Cr SRI Fund to provide equity funding to MSMEs that have the potential and viability to grow and become large units. Of these, INR 10,000 Cr was to come through the Centre and INR 40,000 Cr through PE and VC firms. To further provide liquidity to MSMEs, the FM proposed the following measures: Mandate RBI-regulated digital invoice discounting platform Trade Receivables Discounting System (TReDS) as the transaction settlement platform for all purchases from MSMEs by central public sector enterprises (CPSEs),… Read MoreInc42 Media
