NEW DELHI: The Union Cabinet is likely to take up two proposals linked to the government’s growth and infrastructure priorities, including the setting up of an Integrated Transport and Logistics Authority and the Rs 10,000 crore SME Growth Fund announced in the Union Budget 2026-27.The SME (Small and Medium-Sized Enterprises) Growth Fund was announced by finance minister Nirmala Sitharaman as part of the government’s plan to strengthen the micro, small and medium enterprise (MSME) sector and help businesses emerge as future “Champions”.The fund is aimed at providing equity support to enterprises, with incentives linked to select criteria. Sitharaman had proposed the fund under the first of the government’s three ‘kartavya,’ accelerating and sustaining economic growth by improving productivity and competitiveness and building resilience to volatile global dynamics.The government had also proposed an additional Rs 2,000 crore for the Self-Reliant India Fund, which was set up in 2021. The additional allocation is intended to continue support for micro enterprises and maintain their access to risk capital.The Budget had outlined measures for MSMEs across three areas: equity, liquidity and professional support.On liquidity, Sitharaman said more than Rs 7 lakh crore had been made available to MSMEs through the Trade Receivables Discounting System (TReDS). She proposed making TReDS the transaction settlement platform for purchases from MSMEs by central public sector enterprises, introducing a credit guarantee mechanism through CGTMSE for invoice discounting on the platform, and linking GeM with TReDS to share information on government purchases with financiers.The government also proposed allowing TReDS receivables to be introduced as asset-backed securities to facilitate the development of a secondary market and improve liquidity and settlement of transactions.For professional support, the Budget proposed involving institutions such as ICAI, ICSI and ICMAI in developing short-term modular courses and practical tools to create a cadre of ‘Corporate Mitras’, particularly in Tier-II and Tier-III towns. These accredited para-professionals would help MSMEs meet compliance requirements at affordable costs.Sitharaman, while presenting the Budget, said that the Centre, “decisively and consistently chose action over ambivalence, reform over rhetoric and people over populism”.She said the government was guided by three ‘kartavya’, with the first focused on accelerating and sustaining economic growth.
