₹10,000 Crore Boost for SMEs: New Growth Fund to Supercharge Jobs, Manufacturing, and Exports 

Delhi, February 1, 2026: Finance Minister Nirmala Sitharaman dropped a big win for small businesses in the Union Budget 2026-27: a ₹10,000 crore SME Growth Fund designed to help these engines of the economy scale up, innovate, and take on global markets.  

With job creation, manufacturing revival, and export growth topping the government’s to-do list, this fund couldn’t come at a better time. 

Growth Capital for Tomorrow’s Champions 

This ₹10,000 crore pot will dish out equity and related funding to promising SMEs ready to expand production, upgrade tech, and crack international markets, filling a critical gap in their financing. 

To get in, businesses need a solid track record in making products, innovating, and proving they can scale sustainably. The aim? Build a squad of “champion” SMEs that can slug it out overseas. 

Liquidity Lifeline: Faster Payments via TReDS 

 On top of that, the government is doubling down on cash flow for SMEs. The Trade Receivable Discounting System (TReDS) has already unlocked over ₹7 lakh crore. 

Now, it’ll be the go-to price benchmark, and public sector giants will have to use it for all SME transactions, slashing those frustratingly long payment delays. 

Reviving Clusters and Extra Equity Support 

The budget also greenlights a refresh for 200 industrial clusters nationwide, pumping in help for infrastructure, tech upgrades, and market access to cut costs and boost efficiency. 

Plus, a ₹2,000 crore top-up to the Self-Reliant India Fund will amp up equity for micro and small enterprises. 

How It’ll Work 

Pro fund managers will run the show, zeroing in on scalable outfits with top-notch governance. Eligibility rules, sectors, and ops details will roll out from the relevant ministries soon. 

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