Module: General Practice
Q7: Consider the following regarding the SME Growth Fund announced in Budget 2026-27:
Assertion (A): The government has launched a dedicated SME Growth Fund with a corpus of Rupees 10,000 Crore.
Reason (R): The fund aims to provide equity support to MSMEs to help them scale into mid-sized corporates, addressing the "missing middle" problem.
Reason (R): The fund aims to provide equity support to MSMEs to help them scale into mid-sized corporates, addressing the "missing middle" problem.
✅ Correct Answer: A
The Assertion is True: The Union Budget 2026-27 announced a Rupees 10,000 Crore SME Growth Fund.
The Reason is True and Links: The explicit purpose of this fund is to provide equity or risk capital to Small and Medium Enterprises (SMEs). By providing equity, the government aims to solve the "dwarfism" or "missing middle" issue where firms remain small to avoid compliance or due to lack of growth capital.
The Reason is True and Links: The explicit purpose of this fund is to provide equity or risk capital to Small and Medium Enterprises (SMEs). By providing equity, the government aims to solve the "dwarfism" or "missing middle" issue where firms remain small to avoid compliance or due to lack of growth capital.