India’s MSME fund has an MSME problem. Even though it was designed to solve just that.

On the face of it, things are looking up. The Self Reliant India (SRI) Fund saw a top-up of around Rs 2,000 crore in the Union Budget 2026–27, nearly 4X the previous year’s contribution. 

The Rs 50,000-crore fund—of which the government will contribute 20% with the rest coming from private investors—was conceived as India’s biggest attempt to channel venture-style capital towards MSMEs that banks struggled to finance and........

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