Context:
Recently, the Minister of State for Micro Small and Medium Enterprises provided valuable insights into the Self Reliant India Fund during a written reply in the Lok Sabha.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- Self-Reliant India (SRI) Fund: Boosting MSME Growth and Innovation
- Objectives of the SRI Fund
- Composition of the SRI Fund
Self-Reliant India (SRI) Fund: Boosting MSME Growth and Innovation
- The Indian government introduced the Self-Reliant India (SRI) Fund as part of the Atmanirbhar Bharat package, allocating Rs. 50,000 crores for equity infusion in Micro, Small, and Medium Enterprises (MSMEs).
- The fund operates with a mother-fund and daughter-fund structure, with the National Small Industries Corporation (NSIC) Venture Capital Fund Limited (NVCFL) designated as the Mother Fund for implementation.
Objectives of the SRI Fund:
- Provide equity funding to viable and high-potential MSMEs, facilitating their growth and transformation into larger enterprises.
- Strengthen the MSME sector’s contribution to the Indian economy by promoting innovation, entrepreneurship, and competitiveness.
- Create a conducive environment for technological upgradation, research and development, and enhanced market access for MSMEs.
Composition of the SRI Fund:
- The SRI Fund, with a total of Rs. 50,000 crores, is structured as follows:
- Rs. 10,000 Crore allocated by the Government of India for initiating equity infusion in selected MSMEs.
- Rs. 40,000 Crore sourced through Private Equity (PE) and Venture Capital (VC) funds, leveraging the expertise and investment of the private sector.
