SRI Fund : India’s MSME Self Reliant Growth Engine 2025-26

Introduction: The Dawn of a Self Reliant India and the MSME Imperative

India stands at a pivotal moment in its economic history. The clarion call for ‘Aatmanirbhar Bharat’ or a ‘Self-Reliant India’ is not merely a slogan; it is a meticulously crafted economic doctrine designed to transform the nation into a global powerhouse. At the very heart of this ambitious vision lies the Micro, Small, and Medium Enterprises (MSME) sector—the undisputed backbone of the Indian economy.

To comprehend the scale of this sector is to comprehend the nation’s economic pulse. With over 6 crore enterprises spread across the length and breadth of the country, MSMEs are the crucibles of innovation, the engines of employment for over 11 crore people, and significant contributors to the nation’s GDP and exports. They are the local kirana stores that form the fabric of our communities, the small-scale manufacturing units that power our industrial output, and the service providers that drive our digital economy.

However, for decades, this vital sector has faced a persistent and debilitating challenge: the chronic inadequacy of growth capital. While debt financing has been available in various forms, the access to equity—the kind of patient, risk-taking capital that fuels true expansion, innovation, and scaling—has remained a distant dream for most. Traditional venture capital (VC) and private equity (PE) funds have historically gravitated towards tech-driven, high-growth startups promising exponential returns, often overlooking the immense potential locked within traditional, yet viable, MSMEs.

This is the critical gap that the Self-Reliant India (SRI) Fund is designed to fill. Launched by the Government of India as a cornerstone of the Aatmanirbhar Bharat package, the SRI Fund is not just another scheme. It is a paradigm shift. It is a structural intervention aimed at fundamentally reshaping the MSME financing landscape by infusing growth-stage equity and quasi-equity capital into deserving enterprises.

This definitive guide will provide a deep, expert-level analysis of the SRI Fund, exploring its architecture, objectives, investment strategy, and governance. We will dissect its operational guidelines to offer a clear, forward-looking perspective for the 2025-26 period, providing MSME entrepreneurs, investors, and policymakers with a comprehensive understanding of this transformative initiative.

Deconstructing the Self Reliant India SRI Fund

To understand the SRI Fund, one must first grasp its core philosophy. It is an intervention designed to solve a specific market failure: the lack of growth funding for established MSMEs that have the potential to become national and international champions but are constrained by capital.

The Core Problem the SRI Fund Solves

MSMEs in India face a unique set of hurdles when it comes to accessing equity capital:

1. Structural Barriers: Many MSMEs operate as proprietorships or partnerships, legal structures that are not conducive to external equity infusion.
2. High Transaction Costs: The smaller investment size required by individual MSMEs often makes the deal commercially unattractive for large equity funds due to high due diligence and management costs.
3. Information Asymmetry: A lack of standardized financial reporting and corporate governance can create a trust deficit between entrepreneurs and potential investors.
4. Control Apprehensions: Many MSME promoters are first-generation entrepreneurs who are wary of ceding control of their business to external investors.
5. VC/PE Bias: The existing venture capital ecosystem is heavily skewed towards technology and platform-based businesses, often ignoring the vast potential of ‘brick-and-mortar’ manufacturing and service enterprises.
6. The “Missing Middle” of Funding: While early-stage and seed funding has seen some traction, and large corporations have access to capital markets, there is a significant void in providing growth-stage capital (typically in the range of ₹5 crore to ₹50 crore) for established MSMEs.

The SRI Fund squarely addresses these challenges by creating a dedicated, government-anchored platform to channel capital into this underserved “missing middle.”

The Four : Objectives of the SRI Fund

The SRI Fund is built on four strategic objectives that collectively aim to invigorate the MSME sector:

The Architectural Blueprint – How the SRI Fund Works (2025-26 Perspective)

The genius of the SRI Fund lies in its innovative structure. It doesn’t invest directly in MSMEs. Instead, it employs a Mother Fund-Daughter Fund model, a globally recognized best practice for deploying capital efficiently and leveraging private sector expertise. Think of it as a wholesale-retail model for capital.

The Mother Fund-Daughter Fund Structure Explained

Imagine the Government of India wants to deliver water to thousands of farms (MSMEs). Instead of building a small pipe to each farm itself (inefficient and slow), it builds a massive reservoir and a primary canal (the Mother Fund). It then invites private water management companies (Daughter Funds) to build smaller canals from the main one to clusters of farms. These private companies bring their own resources and expertise in last-mile delivery. The government’s water is thus multiplied and delivered more effectively.

This is precisely how the SRI Fund works.

• The Mother Fund: This is the anchor fund, the reservoir. It is a ₹10,000 crore corpus provided entirely by the Government of India. It does not invest directly into individual MSME companies. Its sole job is to invest in Daughter Funds.
• The Daughter Funds: These are the growth engines, the smaller canals. They are SEBI-registered Alternative Investment Funds (AIFs) managed by professional, private-sector fund managers. They raise the majority of their capital from the market and then receive a co-investment from the Mother Fund. It is these Daughter Funds that perform the crucial task of identifying, evaluating, and investing in high-potential MSMEs.

This structure is a Category II Alternative Investment Fund (AIF) under SEBI regulations.

The Leverage Multiplier Effect: The Magic of 1:4:12

The true power of the SRI Fund is its ability to multiply the initial government investment. Let’s break down this financial leverage, which is the cornerstone of the scheme’s design.

Stage 1: The Fund of Funds Leverage (1:4)

For every ₹4 a Daughter Fund raises from the market (from banks, financial institutions, high-net-worth individuals (HNIs), pension funds, etc.), the Mother Fund commits to co-investing ₹1.

• Daughter Fund raises from market: ₹40 crore
• Mother Fund co-invests: ₹10 crore
• Total investible corpus of Daughter Fund: ₹50 crore

This mechanism leverages the government’s initial ₹10,000 crore fivefold, creating a total equity corpus of ₹50,000 crore available for MSMEs.

• From Mother Fund (GoI): ₹10,000 crore
• From Market (raised by Daughter Funds): ₹40,000 crore
• Total Equity Corpus: ₹50,000 crore

Stage 2: The Debt Leverage (1:3)

Equity is the risk capital that gives banks and financial institutions the confidence to lend. A healthy company can typically raise debt up to three times its equity base (a debt-to-equity ratio of 3:1). When an MSME receives, say, ₹10 crore in equity from a Daughter Fund, it significantly strengthens its balance sheet. This allows it to approach a bank and potentially raise up to ₹30 crore in debt for working capital, machinery, or other operational needs.

The Combined Multiplier Effect (The “Aatmanirbhar” Cascade):

Let’s trace the journey of ₹1 from the Government’s pocket:

1. GoI invests ₹1 into the Mother Fund.
2. This ₹1 is used to leverage ₹4 from the private market via a Daughter Fund, creating ₹5 of total equity.
3. This ₹5 of equity injected into an MSME enables it to raise approximately ₹15 in debt (assuming a 3:1 debt-equity ratio, though this can vary).
4. This means the MSME now has ₹20 of total growth capital (₹5 equity + ₹15 debt) at its disposal.

The initial ₹10,000 crore from the government could theoretically unlock up to ₹2,00,000 crore in the MSME ecosystem, a staggering 20x multiplier effect. This is the financial architecture designed to fuel the Aatmanirbhar Bharat mission.

NSIC Venture Capital Fund Limited (NVCFL)

The entire structure is anchored and managed by a dedicated entity. The Government has established NSIC Venture Capital Fund Limited (NVCFL), a wholly-owned subsidiary of the National Small Industries Corporation (NSIC), to act as the Special Purpose Vehicle (SPV) and Investment Manager for the Mother Fund. This ensures professional management while aligning with the government’s broader MSME development goals.

The Beneficiaries – Who Can Access the SRI Fund in 2025-26?

The SRI Fund is not a subsidy or a grant; it is a growth-oriented investment. Therefore, the selection process is rigorous, focusing on viability and potential. The funding flows from the Mother Fund to Daughter Funds, and finally to the MSMEs.

Eligibility Criteria for MSMEs

The target beneficiaries are MSMEs that are poised for a step-jump in growth but are held back by a lack of capital. A Daughter Fund, when evaluating an MSME for investment in 2025-26, will look for the following key attributes:

1. Official MSME Status: The enterprise must be a registered MSME as per the prevailing definition under the MSMED Act. As of 2025, this is based on a composite criterion of investment in plant & machinery and annual turnover.
2. Proven Viability and Positive Trajectory: The MSME should be an existing, operational business with a track record. Daughter Funds will analyze the Compound Annual Growth Rate (CAGR) for the previous 3 years to assess its growth history.
3. Defined Growth Plan: The entrepreneur must have a clear, credible, and ambitious business plan. This plan should detail how the infused capital will be used to expand capacity, enter new markets, upgrade technology, or strengthen the supply chain, leading to positive future cash flows.
4. Potential to Scale: The fund’s objective is to create “National Champions.” Therefore, the focus is on businesses that have the potential to grow significantly, create jobs, and potentially even list on a stock exchange in the future.
5. Corporatized or Willing to Corporatize: While the fund can invest in various structures, there is a strong encouragement for MSMEs to become private limited or limited companies, as this allows for cleaner equity infusion and better corporate governance.

Focus Sectors and Investment Philosophy for 2025-26

The guidelines explicitly state that the investment focus will be on traditional manufacturing and service MSMEs, which are often overlooked by conventional VCs. In the context of 2025-26, this translates to a focus on sectors critical to India’s self-reliance and economic resilience:

• Advanced Manufacturing: Auto components (especially for the EV ecosystem), defense and aerospace components, electronics manufacturing, medical devices, and specialty chemicals.
• Resilient Supply Chains: Food processing, textiles and apparel, pharmaceuticals and APIs (Active Pharmaceutical Ingredients), and furniture manufacturing.
• Sustainable and Green Technologies: Waste management solutions, renewable energy components, and sustainable packaging.
• Services with Depth: Tech-enabled logistics, healthcare services, education technology (ed-tech) for vocational skills, and B2B software services that improve industrial efficiency.

The philosophy is to invest in the real economy, fostering businesses that create tangible assets, intellectual property, and stable, long-term employment.

Who is NOT Eligible?

The guidelines are very clear about the entities that cannot receive funding under this scheme to ensure the capital is directed towards its intended purpose:

• Non-Profit Institutions (NGOs, Trusts)
• NBFCs (Non-Banking Financial Companies)
• Financial Inclusion Sector entities
• Micro-credit Sector organizations
• Self-Help Groups (SHGs)
• Other financial intermediaries

The Investment Nuts and Bolts – Strategy and Process

For an MSME entrepreneur, understanding the investment process and the types of capital available is crucial. The SRI Fund offers flexibility, moving beyond simple equity.

Investment Instruments: More Than Just Equity

Daughter Funds can provide capital in several forms, tailored to the specific needs of the MSME:

• Equity: The Daughter Fund buys a share of ownership in the MSME. This is patient capital, and the fund makes its return when the company grows and the value of its shares increases. The promoter gets a long-term partner and capital without the burden of interest payments.
• Quasi-Equity Instruments: These are financial instruments that have characteristics of both debt and equity. Common examples include:
  • Compulsorily Convertible Debentures (CCDs): The fund gives a loan (debenture) to the MSME, which must be converted into equity at a future date based on a pre-agreed formula.
  • Compulsorily Convertible Preference Shares (CCPS): Similar to CCDs, these are preference shares that convert into equity shares.
  • These instruments are popular as they can provide downside protection for the investor while giving the promoter time to achieve growth milestones before equity dilution.
• Structured Debt: In some cases, Daughter Funds might provide debt that is structured with equity-like features, such as a share in profits or revenue.

This flexibility allows Daughter Funds to create customized funding solutions that align with the MSME’s cash flows and the promoter’s comfort level regarding dilution of ownership.

The Journey of an MSME: From Application to Funding

Here’s a simplified, step-by-step guide for an MSME seeking to benefit from the SRI Fund in 2025-26:

Step 1: Preparation and Self-Assessment:

• Ensure your business is a registered MSME.
• Get your financial statements in order for the last 3-5 years.
• Develop a detailed and realistic business plan and financial projections. Clearly articulate how much capital you need and what you will achieve with it.

Step 2: Identifying and Approaching a Daughter Fund:

• The NVCFL website (nvcfl.co.in) will be the primary source of information on empanelled Daughter Funds.
• Research these Daughter Funds. Each may have a specific sectoral focus (e.g., manufacturing, food processing) or a preferred investment size.
• Approach the Daughter Fund that is the best fit for your business. This is like a job application; you need to find the right company to apply to.

Step 3: The Pitch and Preliminary Screening:

• You will present your business plan to the Daughter Fund’s investment team.
• They will conduct a preliminary screening to see if your business meets their basic criteria and investment thesis.

Step 4: Due Diligence:

• If your pitch is successful, the Daughter Fund will initiate a detailed due diligence process. This is an intensive audit of your business.
• Financial Due Diligence: They will scrutinize your revenues, profits, costs, assets, and liabilities.
• Legal Due Diligence: They will check your company’s registration, contracts, licenses, and any pending litigation.
• Operational Due Diligence: They may visit your factory or office, speak to your key employees, and even talk to some of your major customers and suppliers.

Step 5: Term Sheet and Negotiation:

• If due diligence is successful, the Daughter Fund will offer a Term Sheet.
• This is a non-binding document that outlines the key terms of the investment: the amount, the valuation of your company, the type of instrument (equity, CCDs), the rights the fund will have as an investor (e.g., a seat on the board), and the exit clauses.
• This is a critical negotiation phase. It is advisable for the MSME promoter to have legal and financial advisors at this stage.

Step 6: Final Approval and Fund Disbursal:

• Once the term sheet is agreed upon, definitive legal agreements are drafted and signed.
• The Daughter Fund will then disburse the funds into the MSME’s account, often in tranches linked to the achievement of specific business milestones.

Step 7: Partnership and Growth:

• The Daughter Fund is now your partner. They will work with you, providing strategic guidance, industry connections, and financial discipline to help you execute the growth plan.

The Long-Term Vision: A 15-Year Horizon and the Path to Listing

The SRI Fund is designed to be patient capital. The fund has a long tenure of 15 years, with a commitment period (the period during which investments are made) of up to 6 years. This long horizon is a deliberate choice, acknowledging that transforming a traditional MSME into a large, stable corporation takes time.

A key objective is to groom MSMEs for an eventual listing on a stock exchange, such as the BSE SME or NSE Emerge platforms. A listing provides immense benefits:

• Access to a much larger pool of capital from the public.
• Enhanced credibility and brand visibility.
• A transparent mechanism for wealth creation for the promoter.
• A clear exit path for early investors like the Daughter Funds.

Governance and Management – Ensuring Transparency and Efficiency

A fund of this magnitude and national importance requires a robust governance structure to ensure transparency, accountability, and professional decision-making. The SRI Fund’s framework is designed to maintain an arm’s-length distance from bureaucratic hurdles while ensuring alignment with national objectives.

The Governance Hierarchy

1. The Advisory Board:
   • This is the apex body that provides overall strategic direction.
   • It is chaired by the Secretary of the Ministry of MSME.
   • It comprises eminent domain experts from the private equity and venture capital world, along with senior government officials.
   • Role: Formulates broad guidelines for the fund, including the empanelment criteria for Daughter Funds, investment focus, and monitoring the overall progress of the scheme.
2. The SPV Board (NVCFL Board):
   • This is the board of the Special Purpose Vehicle, NVCFL.
   • It is chaired by the CMD of NSIC and includes government-nominated directors, an NSIC-nominated director, and a professional CEO.
   • Role: Maintains oversight over the operations of the SRI Fund, ensuring all decisions comply with SEBI regulations and the fund’s legal documents.
3. The Investment Committee:
   • This is the committee that makes the actual investment decisions for the Mother Fund (i.e., which Daughter Funds to invest in).
   • It is a professional body composed of experienced fund managers, risk managers, and financial experts.
   • It is chaired by an eminent professional with deep experience in finance or capital markets.
   • Role: To take independent, commercially sound decisions on empanelling and allocating capital to Daughter Funds, maintaining an arm’s-length distance from the government.

Fees and Commercials: A Lean Structure

The fund is designed to be efficient, with operational expenses kept to a minimum.

• Management Fee to SPV: The NVCFL, as the SPV managing the fund, is permitted a management fee of up to 1% of the corpus actually placed at its disposal.
• Fee to the AMC (Fund Manager): The Asset Management Company (or Fund Manager) operating the Mother Fund is paid a fee of up to 0.50% per annum of the commitments made to Daughter Funds, outstanding commitments, and funds deployed. This fee covers all operating expenses for due diligence, managing committees, etc., and is paid half-yearly.
• All these expenses are debited from the Fund itself and are considered operational costs.

Risk Management: A Two-Way Street

Risk management is a critical component.

• At the Mother Fund Level: The Investment Committee conducts rigorous due diligence on Daughter Funds, assessing their track record, investment strategy, and team quality. Exposure limits are set (no single Daughter Fund can receive more than 20% of the Mother Fund’s corpus, i.e., ₹2,000 crore) to ensure diversification.
• At the Daughter Fund Level: The Daughter Funds are responsible for conducting their own detailed due diligence on MSMEs. They are also required to have their own financial risk management and environmental/social safeguard systems in place.

SRI Fund in Action – Illustrative Use Cases for 2025-26

To bring the fund’s impact to life, let’s consider a few hypothetical, but realistic, examples of how it might empower MSMEs in the 2025-26 timeframe.

Case Study 1: “Precision Auto Components,” Pune

• The Business: A 15-year-old MSME manufacturing high-precision machined components for internal combustion (IC) engine cars. They have a strong reputation for quality but see their growth stagnating as the market shifts to Electric Vehicles (EVs).
• The Vision: The promoter wants to pivot and expand into manufacturing components for EV drivetrains and battery casings. This requires new CNC machines, a dedicated assembly line, and R&D for new materials.
• The Challenge: Banks are hesitant to fund this “future” project, and the promoter doesn’t have the ₹15 crore required for the expansion.
• The SRI Solution:
  • The promoter approaches “AutoVision Growth Fund,” a Daughter Fund specializing in manufacturing.
  • After extensive due diligence, AutoVision is impressed by the promoter’s engineering expertise and vision.
  • They offer a deal: ₹15 crore via Compulsorily Convertible Debentures (CCDs). This gives the promoter the capital they need without immediate equity dilution.
  • The CCDs will convert to a 25% equity stake after 3 years, provided the company meets its revenue targets from the new EV division.
• The Outcome (Projected): With the capital, Precision Auto secures contracts with two major EV manufacturers. The Daughter Fund uses its network to connect them with a battery tech company for a potential joint venture. In five years, the company’s valuation triples, and it becomes a key player in the EV supply chain.

Case Study 2: “Himalayan Organics,” Uttarakhand

• The Business: A profitable MSME that processes and packages organic apples and apricots, sourced from local farmer cooperatives. They have a strong brand in North India but lack the capacity for national distribution.
• The Vision: The entrepreneur wants to set up a modern, large-scale processing and packaging plant, obtain international food safety certifications, and launch their products on a pan-India basis through major retail chains. The required investment is ₹20 crore.
• The Challenge: The project is capital-intensive, and the returns will only be visible after 2-3 years. Traditional debt is too expensive.
• The SRI Solution:
  • They connect with “Agri-Bharat Fund,” a Daughter Fund focused on agriculture and food processing.
  • Agri-Bharat sees the potential to build a national brand and create significant social impact by supporting local farmers.
  • They invest ₹20 crore for a 30% equity stake.
• The Outcome (Projected): The new plant increases production tenfold. The Daughter Fund helps them professionalize their management, hire a national sales head, and negotiate contracts with top retail chains. The company becomes a leading organic food brand, supporting thousands of farmers and on the path to an IPO in 7-8 years.

Case Study 3: “Deccan Defense Tech,” Hyderabad

• The Business: A small, innovative firm founded by ex-DRDO scientists, manufacturing specialized communication modules for drones. They have the technology but lack the capital to meet the quality standards and scale required for large defense contracts.
• The Vision: To become a certified supplier to the Indian Armed Forces and eventually export their technology. This requires ₹10 crore for a secure manufacturing facility, testing equipment, and certifications.
• The SRI Solution:
  • They are identified by “Aatmanirbhar Defense Fund,” a thematic Daughter Fund.
  • The fund invests ₹10 crore in pure equity. More importantly, the fund managers, who are veterans of the defense industry, provide critical mentorship on navigating the complex defense procurement process.
• The Outcome (Projected): The company achieves the necessary certifications. The Daughter Fund’s credibility helps them win a significant contract from the Indian Army. They become a prime example of the “Make in India” for defense initiative, a national champion in a strategic sector.

SRI Fund vs. Other MSME Schemes – A Comparative Analysis

It’s important to understand where the SRI Fund fits within the broader ecosystem of government support for MSMEs. It is unique and complements, rather than competes with, other schemes.

The Road Ahead – Challenges and Outlook for 2025-26 and Beyond

The SRI Fund is a brilliantly designed policy instrument, but its success will depend on effective execution. As we look towards 2025-26, several challenges and opportunities lie ahead.

Potential Challenges

1. Last-Mile Reach: The biggest challenge will be ensuring that information about the fund and access to Daughter Funds percolates down to deserving MSMEs in Tier-2, Tier-3 cities, and rural areas.
2. Capacity Building for MSMEs: Many MSMEs, despite having great products, may lack the financial literacy and corporate governance structures to be “investment-ready.” A parallel effort in training and capacity building will be crucial.
3. Availability of Quality Fund Managers: The success of the model hinges on the ability of private Daughter Funds to raise capital and find good investments. Attracting top-tier fund management talent to focus on traditional MSMEs will be key.
4. Managing Expectations: The fund’s 15-year tenure means that results will not be immediate. It is patient capital, and it’s important to manage expectations regarding quick returns or exits.

The Long-Term Outlook and Transformative Impact

Despite the challenges, the SRI Fund has the potential to be one of the most impactful economic reforms for the MSME sector. Its long-term impact could be transformative:

• Deepening of Capital Markets: By encouraging corporatization and listing, the fund will help create a new pipeline of quality companies for the Indian stock markets.
• A “Demonstration Effect”: The success of the initial Daughter Funds and their portfolio companies will attract more private capital into the MSME growth funding space, creating a self-sustaining ecosystem.
• Formalization of the Economy: The infusion of equity capital necessitates better accounting, legal compliance, and corporate governance, driving the formalization of the MSME sector.
• Creation of Resilient Domestic Champions: By 2030, we could see a new league of mid-sized to large corporations that were once MSMEs, powered by the SRI Fund, leading their respective sectors and reducing India’s import dependency.

Frequently Asked Questions (FAQ) SRI Fund – Self Reliant India’s

Q1: I am a small shop owner. Can I get a loan from the SRI Fund?
A: No. The SRI Fund does not provide direct loans. It provides equity capital (ownership stake) to growth-oriented MSMEs through private Daughter Funds. For small loans, schemes like MUDRA are more appropriate.

Q2: How do I apply for the SRI Fund?
A: You do not apply to the SRI Fund directly. You need to identify and approach one of the empanelled Daughter Funds. A list of these funds will be available on the NVCFL website (nvcfl.co.in).

Q3: Will I lose control of my company if I take money from a Daughter Fund?
A: When you take equity funding, you sell a part of your company’s ownership. You will dilute some of your shareholding, but you will not necessarily lose control. The Daughter Fund will likely take a minority stake and a board seat to provide guidance. This is a partnership to grow the company, which benefits both you and the fund.

Q4: How much money can I get for my MSME?
A: There is no fixed limit, but this is growth capital, not startup funding. The investments are expected to be substantial, likely in the range of several crores, depending on your business plan and the investment thesis of the Daughter Fund. The minimum sanction to a Daughter fund is ₹25 crore.

Q5: Is the SRI Fund only for tech companies?
A: No, quite the opposite. The fund’s specific focus is on traditional manufacturing and service MSMEs, the sectors often overlooked by technology-focused VCs.

Q6: How long does the process take from application to receiving funds?
A: The process is thorough and can take several months (typically 6-9 months). It involves detailed due diligence, negotiation, and legal documentation.

Q7: My company is a proprietorship. Am I eligible?
A: While you might be eligible for initial consideration, a Daughter Fund will almost certainly require you to convert your business into a Private Limited company before they can invest equity capital in it.

Q8: What is the interest rate on the funding?
A: This is the most important distinction. Equity is not a loan, so there is no interest rate. The Daughter Fund invests for ownership and makes its return when the company’s value grows. This frees up your cash flow from the burden of monthly EMI payments.

Conclusion: SRI Self Reliant India Fund MSME Scheme 2025-26

The Self-Reliant India (SRI) Fund is more than just a financial scheme; it is a vote of confidence in the untapped potential of India’s entrepreneurs. It is a strategic shift from debt-based support to equity-based partnership, from sustenance to scale, and from local players to global champions.

By creating a robust, multi-layered architecture, the fund masterfully blends government vision with private sector efficiency. It addresses the most critical bottleneck for MSMEs—the access to patient, long-term growth capital—and in doing so, lays a foundational stone for the edifice of Aatmanirbhar Bharat.

For the MSME promoter with a powerful vision and a proven track record, the SRI Fund opens a new door. It offers not just capital, but a partnership with seasoned professionals who can provide the strategic guidance, market access, and financial discipline needed to navigate the complex journey of growth.

As the Daughter Funds begin deploying capital in 2025-26 and beyond, the seeds of transformation will be sown across India’s industrial landscape. The success of the SRI Fund will not be measured in the crores disbursed, but in the number of MSMEs that graduate to become large enterprises, the new jobs that are created, the import substitution that is achieved, and the new generation of Indian brands that take their rightful place on the global stage. This is the promise of the SRI Fund—a promise of empowering MSMEs to build a truly Self-Reliant India.