India, Feb. 1 -- In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman proposed a Rs 10,000 crore SME Growth Fund to help small and medium enterprises scale into global players. This dedicated fund aims to move beyond providing simple credit and focuses on equity support for firms with high growth potential.

The MSME sector contributes nearly 30% to India's GDP and almost 45% of its total exports. Historically, government support for these units relied heavily on debt and credit guarantee schemes. The 2026-27 Budget signals a change by emphasising equity participation.

The Rs 10,000 crore SME Growth Fund will target enterprises that demonstrate export readiness and technical capability but lack the capital to scale. Unlike lo...