Budget 2026: Sitharaman announces ₹10,000cr SME growth fund
What's the story
Finance Minister Nirmala Sitharaman has announced several measures in the Union Budget 2026 to support Micro, Small and Medium Enterprises (MSMEs). The government plans to set up a ₹10,000 crore SME growth fund and add ₹2,000 crore to the self-reliant India fund. Sitharaman also announced liquidity support for these businesses.
Digital transactions
TReDS platform to be made mandatory for CPSEs transactions
Sitharaman also announced that the Trade Receivables Discounting System (TReDS) platform will be made mandatory for all Central Public Sector Enterprises (CPSEs) transactions with MSMEs. The move is aimed at making it easier for these small businesses to access credit and improve their cash flow management.
Fund details
Self-Reliant India Fund
The Self-Reliant India (SRI) Fund was established to provide ₹50,000 crore in equity funding to MSMEs. The fund includes a ₹10,000 crore contribution from the Government of India and ₹40,000 crore from Private Equity/Venture Capital Funds. Sitharaman's announcement comes as part of the government's continued effort to strengthen India's small business sector and promote self-reliance.