Home / Business and Economy / SIDBI Gets Rs 5,000 Crore Boost for MSMEs
SIDBI Gets Rs 5,000 Crore Boost for MSMEs
22 Jan
Summary
- Union Cabinet approved Rs 5,000 crore equity capital for SIDBI.
- Targeted to increase MSME beneficiaries from 76.26 lakh to 1.02 crore.
- Expected to create 1.12 crore new jobs by 2027-28.
The Union Cabinet recently approved a substantial equity infusion of Rs 5,000 crore into the Small Industries Development Bank of India (SIDBI). This strategic move is intended to enhance the flow of credit to Micro, Small, and Medium Enterprises (MSMEs) across the country.
The allocated funds will be disbursed over three financial years, starting with ₹3,000 crore in 2025-26, followed by ₹1,000 crore in each of the subsequent two years. This capital injection is projected to raise the number of MSMEs receiving financial assistance from 76.26 lakh to over 1 crore by the end of 2028.
This expansion of credit access is anticipated to foster significant job creation, with an estimated 1.12 crore new jobs expected by 2027-28. The infusion will also strengthen SIDBI's financial health, enabling it to maintain a healthy Capital to Risk-weighted Assets Ratio (CRAR) necessary for sustained lending operations and favourable credit ratings.
