Cabinet Approves Rs 5,000 Crore Capital Boost for SIDBI to Empower MSMEs

• The Union Cabinet, led by PM Narendra Modi, approved a Rs 5,000 crore capital injection for SIDBI.
• The capital support will be disbursed in three tranches: Rs 3,000 crore in FY 2025-26, and Rs 1,000 crore each in FY 2026-27 and FY 2027-28.
• This investment is projected to increase MSME beneficiaries by 25.74 lakh, reaching 102 lakh by end of 2028.
• An estimated 1.12 crore new jobs are expected to be created by the end of FY 2027-28 due to increased MSME support.
• The capital infusion will help SIDBI maintain a healthy capital adequacy ratio, enabling it to offer competitive credit rates to MSMEs and support its growing loan portfolio and venture loans to start-ups.

Why It Matters: Government's Rs 5,000 crore capital boost to SIDBI aims to significantly expand MSME support and job creation.