The Union Cabinet on 6 October 2026 approved a Government of India commitment of ₹10,000 crore towards the SME Growth Fund (SGF), which is to provide growth equity capital to small and medium enterprises. The money goes to an Alternative Investment Fund set up under the SGF framework, and the majority allocation is to be made to small and medium manufacturing-focused enterprises. The release does not give eligibility conditions, a fund manager or a start date.
GOBARdhan, the unified scheme for compressed biogas (CBG), was approved by the Union Cabinet on 6 August 2026 with an outlay of ₹23,731 crore for FY 2026-27 to FY 2035-36 and launched on 1 October 2026 with a Handbook and a Unified GOBARdhan Portal. It offers an administered CBG price of ₹2,110 per MMBtu, capital assistance and a credit guarantee for MSME projects.
The Department of Pharmaceuticals has opened the PRIP portal for the second call of the ₹5,000 crore Promotion of Research and Innovation in Pharma & MedTech scheme and added a New Discovery track: up to ₹50 crore for startups and MSMEs doing NCE/NBE projects at TRL 1–3, with at least 25% co-funding from bona fide institutional investors.
The Ministry of MSME has rolled out credit guarantee cover on invoice discounting through TReDS. The CGTMSE portal is integrated with three platforms — M1xchange, RXIL and DTX (KredX). Under the Special Provision, both buyer and seller must be micro or small enterprises; the cover is 75% of the amount in default, with exposure up to ₹10 crore for a buyer and ₹2 crore for a seller.
The Ministry of Electronics and IT has notified the Mobile Phone Manufacturing Scheme with an outlay of ₹62,500 crore for FY 2026-27 to FY 2030-31. Target Segment 1 gives manufacturers an incentive of 2.25% to 5%; Target Segment 2 gives Indian brands 5% plus 3% for Indian design and R&D. Up to 1.5% more is available for domestic sourcing of key components.
The Micro, Small and Medium Enterprises Development (Amendment) Act, 2026 (No. 16 of 2026) received the President’s assent on 13 August 2026. It sets time limits for delayed-payment disputes, lets awards be recovered as arrears of land revenue, requires Central PSEs to settle MSME invoices through TReDS and replaces penal provisions with graded penalties. It comes into force on dates the Central Government notifies.
DGFT has opened the “Source from India” buyer-discovery feature of the Trade Connect ePlatform to DPIIT-recognised start-ups. Those meeting the existing criteria get a unique start-up badge. As a special exception, start-ups that do not meet the criteria may still register if they hold an active IEC and are not in the Denied Entity List.
In a Rajya Sabha reply the Government set out the Emergency Credit Line Guarantee Scheme 5.0, introduced in May 2026, and SIDBI’s direct-credit growth.
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