India to inject $600M into SIDBI to expand MSME lending and create 11.2M jobs by 2028.

The Indian government approved a ₹5,000 crore equity infusion into SIDBI in three tranches to boost credit access for MSMEs, aiming to increase beneficiaries from 76.26 lakh in 2025 to 102 lakh by 2028 and generate about 1.12 crore new jobs. The funding, based on annual book values, supports SIDBI’s capital adequacy, enabling expansion into digital, collateral-free, and venture debt lending while maintaining strong credit ratings and competitive borrowing rates.