Module: General Practice
Q61: With reference to the "SME Growth Fund" and equity support initiatives announced in the Union Budgets (2025-26 and 2026-27), consider the following statements:
The government announced a ₹10,000 crore SME Growth Fund in February 2026 to provide equity support.
The "Self-Reliant India (SRI) Fund" operates through a "Mother Fund-Daughter Fund" structure.
Equity infusion is intended to lower the debt-equity ratio, making SMEs more eligible for bank finance.
Which of the statements given above are correct?
The "Self-Reliant India (SRI) Fund" operates through a "Mother Fund-Daughter Fund" structure.
Equity infusion is intended to lower the debt-equity ratio, making SMEs more eligible for bank finance.
Which of the statements given above are correct?
✅ Correct Answer: D
All statements are correct.
First, the Finance Minister announced a new ₹10,000 Crore SME Growth Fund in the February 2026 budget to create "National Champions." Second, the SRI Fund uses a structure where the Government invests in a "Mother Fund," which then invests in SEBI-registered "Daughter Funds" (Venture Capital funds), which finally invest in MSMEs.
Third, equity infusion increases an SME's "Net Worth." A higher Net Worth lowers the Debt-Equity Ratio (Leverage), making the balance sheet stronger and safer for banks to lend to.
First, the Finance Minister announced a new ₹10,000 Crore SME Growth Fund in the February 2026 budget to create "National Champions." Second, the SRI Fund uses a structure where the Government invests in a "Mother Fund," which then invests in SEBI-registered "Daughter Funds" (Venture Capital funds), which finally invest in MSMEs.
Third, equity infusion increases an SME's "Net Worth." A higher Net Worth lowers the Debt-Equity Ratio (Leverage), making the balance sheet stronger and safer for banks to lend to.