Thu, 8 Oct, 2026, 04:34 am
Reported by Bhaskar English
The government has officially approved the ₹10,000-crore 'SME Growth Fund' to provide long-term capital to small and medium-sized units for expansion.
The scheme's biggest feature is that it is not like a traditional bank loan. The government will invest this money directly as 'equity investment' (shareholding capital) in growth-oriented and commercially viable units through alternative investment funds (AIFs), meaning entrepreneurs will not have to bear the burden of paying interest or EMIs every month.
A game-changer for textiles and lab-grown diamonds Units in the technical textiles sector, including Surat's weaving industry, that want to establish high-speed automation, energy-efficient boilers and large plants will receive long-term capital. On the other hand, for Surat's lab-grown diamond and studded jewellery manufacturing sectors, as well as those seeking to build brands in foreign retail markets, this equity capital will become the biggest tool for expansion.
South Gujarat's industrial belt to benefit from Tier-II and Tier-III clusters Units in industrial belts such as Surat, Vapi, Ankleshwar, Bharuch, Dahej and Hazira will also receive priority under this fund. The government's objective is to make the local supply chain globally competitive.
