Cabinet poised to approve ₹10,000 crore SME Growth Fund and set up Integrated Transport and Logistics Authority

The Union Cabinet is set to approve a ₹10,000 crore SME Growth Fund and a proposal for an Integrated Transport and Logistics Authority (ITLA) on Tuesday, October 6, 2026.

SME Growth Fund

The fund will make direct equity investments in Small and Medium Enterprises to create future champions. It was first mentioned in the Union Budget 2026 by Finance Minister Nirmala Sitharaman as a way to incentivise firms that meet select criteria. The scheme is part of a three‑pronged effort that combines equity support, liquidity measures such as easier credit access, and professional support like mentorship and technical assistance. Capital will flow straight to eligible SMEs to help them expand and compete globally.

Integrated Transport and Logistics Authority

ITLA will be created as a non‑profit special purpose vehicle under the Companies Act 2013 and is tentatively named the Gati‑Shakti Transport and Logistics Planning and Research Authority. The body will be owned by the Union Government and operate under the Cabinet Secretariat. Its main aim is to centralise and systematise infrastructure planning, removing silos between ministries. ITLA will focus on research, planning, appraisal, monitoring and impact assessment across the transport and logistics ecosystem. It will coordinate with the Ministries of Road Transport and Highways, Ports, Shipping and Waterways, Railways, Civil Aviation and Housing and Urban Affairs, advising on efficient use of resources and cutting project delays.

Context

These moves reflect the government’s push to strengthen small businesses and streamline logistics planning, both seen as vital drivers of India’s economic growth.