New Delhi, Jan. 22 -- The Union cabinet on Wednesday approved an equity infusion of Rs.5,000 crore into the Small Industries Development Bank of India (SIDBI). The move is aimed at strengthening the lender's capital base and significantly expanding the flow of credit to micro, small and medium enterprises (MSMEs), according to a statement released by the cabinet secretariat. The department of financial services will provide the capital support in three tranches, with Rs.3,000 crore to be infused in the fiscal year 2026 (FY26) at the book value as of March 31, 2025, followed by Rs.1,000 crore each in FY27 and FY28 at the prevailing book value at the end of the preceding financial year. In a related development, the cabinet approved the continuation of the Atal Pension Yojana (APY) up to FY31, and extended government funding for promotional and developmental activities and gap funding to ensure the scheme's long-term viability. Launched in 2015 to provide income in old age to workers in the unorganised sector, APY offers a guaranteed monthly pension of Rs.1,000 to Rs.5,000 from the age of 60, based on subscriber contributions. As of January 19, the scheme has more than 86.6 million subscribers. According to the government statement following the equity infusion, the number of MSMEs receiving financial assistance from SIDBI is expected to rise from 7.62 million at the end of FY25 to about 10.2 million by FY28, translating to nearly 2.57 million new beneficiaries. Based on MSME ministry data indicating an average of 4.37 employees per MSME, the additional lending is estimated to support employment for around 11.2 million people by the end of FY28. Vinod Kumar, president of the SME Forum, said, "The decision of the Union cabinet is in line with the government's commitment to boost credit uptake and expand financial outreach to the MSME sector. Coming at a time when the nation's exporters are facing tariffs, this infusion supporting around two million NTB (new to bank) MSE accounts empowers them to scale innovation, adopt digital tools and increase competitiveness, with the potential to create over 10 million new jobs."...