Union Cabinet approves the ₹10,000 crore SME Growth Fund and Integrated Transport and Logistics Authority to support businesses and infrastructure.
The Union Cabinet chaired by Prime Minister Narendra Modi on Tuesday approved two significant measures aimed at strengthening India’s transport infrastructure and supporting the expansion of small and medium enterprises. The decisions include setting up an Integrated Transport and Logistics Authority (ITLA) and committing ₹10,000 crore towards the SME Growth Fund.
The two initiatives are designed to improve coordination across India’s transport network and provide growth-stage equity support to businesses with the potential to scale. The SME Growth Fund was originally announced in the Union Budget 2026-27 as part of the government’s broader strategy to develop high-potential enterprises.
Integrated Transport and Logistics Authority Approved
The newly approved Integrated Transport and Logistics Authority will function as an apex mechanism for integrated planning across India’s transport and logistics ecosystem. It will bring together different modes of transportation, including roads, railways, ports and shipping, civil aviation, inland waterways, coastal shipping and urban mobility.
The authority will prepare a long-term National Transport Master Plan with a planning horizon of 10 years. It will also work on coordinated planning between the Centre and states to improve the overall integration of transport infrastructure.
Technical Review of Major Infrastructure Projects
ITLA will also undertake technical appraisal of major government infrastructure projects costing ₹500 crore or more. Financial appraisal, however, will continue through the existing financial assessment framework.
The authority will monitor the implementation of large transport and infrastructure projects and provide a coordinated platform for resolving issues that may arise during execution. It will also conduct post-implementation assessments to evaluate the impact of completed projects.
The government has said the authority will strengthen research, planning, project appraisal, monitoring and impact assessment across the transportation and logistics sector.
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₹10,000 Crore SME Growth Fund Gets Cabinet Approval
Alongside the transport reform, the Cabinet approved a government commitment of ₹10,000 crore for the SME Growth Fund. The fund will provide direct equity investment and long-term growth capital to selected small and medium enterprises.
According to the government, the SME Growth Fund is intended to help promising businesses expand their operations and develop into future Indian business champions. The initiative will cover enterprises operating in manufacturing, services, technology, innovation-driven industries and strategic value chains.
Manufacturing-focused SMEs are expected to receive particular attention, while businesses in other growth-oriented sectors will also be eligible for support under the broader framework.
Focus on Creating Future Champions
The SME Growth Fund forms part of the government’s “Creating Champion MSMEs” strategy announced in the Union Budget 2026-27. The objective is to provide equity support to enterprises that demonstrate business viability and the ability to scale.
The government expects the initiative to deepen access to growth-stage capital and help Indian enterprises strengthen their presence in domestic as well as international markets.
Supporting India’s Long-Term Growth
The approval of the SME Growth Fund comes alongside other measures announced in the 2026-27 Budget to improve the financial and operational environment for MSMEs. The Budget had proposed a dedicated ₹10,000 crore fund while also outlining measures to improve liquidity and access to risk capital for smaller businesses.
The two Cabinet decisions together focus on separate but connected areas of economic development: better coordination of transport and logistics infrastructure and stronger access to capital for growing enterprises.
The government has linked these initiatives with its broader vision of building a more integrated infrastructure network and creating Indian companies capable of competing in global markets.
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