Govt approves ₹5,000 cr equity support for SIDBI to boost MSME credit

• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved ₹5,000 crore in equity support for SIDBI.
• The Department of Financial Services (DFS) will infuse the capital in three tranches: ₹3,000 crore in 2025-26, and ₹1,000 crore each in 2026-27 and 2027-28.
• This capital infusion aims to enable SIDBI to offer credit to Micro, Small & Medium Enterprises (MSMEs) at competitive interest rates.
• The move is expected to increase the number of MSME beneficiaries from 76.26 lakh to 102 lakh by FY2028, adding approximately 25.74 lakh new beneficiaries.
• The equity infusion is projected to generate 1.12 crore jobs by the end of 2027-28.

Why It Matters: Government's ₹5,000 crore equity support to SIDBI will significantly boost credit flow and job creation for MSMEs.