SRI Fund - Empowering MSMEs for Sustainable Growth Many micro and small enterprises (MSMEs) struggle to gain access to sufficient capital to expand. This fund provides equity rather than loans to help businesses focus on future expansion. NSIC Venture Capital Fund Limited 0 SRI Fund, an Alternative Investment Fund registered with SEBI, created this fund using its "Fund-of-Funds" investment strategy: its Mother Fund invests in other funds, known as Daughter Funds, which then invest directly in MSMEs. Self-Reliant India (SRI) Fund: The Self-Reliant India Fund seeks to assist micro and small enterprises (MSMEs) by providing access to equity capital that will enable their growth faster and increase their contribution to the economy through job creation and export growth. MSMEs often go overlooked by private investors due to a lack of high returns or their inability to meet stringent listing requirements on stock exchanges. Yet they play a vital role in our economy and employ millions of people nationwide, which is why the government created the SRI Fund to inject growth capital into MSMEs so they can expand and compete on both a national and international scale. The SRI Fund is a public-private partnership, funded by the government of India, with a distinct "fund of funds" structure that channels private equity and venture capital investments to MSMEs. Government contributions totalling Rs 10,000 crore will go toward equity infusions into select MSMEs, while Rs 40,000 crore from private equity funds will leverage private-sector expertise and investments. The structure of this fund aims to assist MSMEs with clear growth plans by speeding up their expansion. Furthermore, the fund focuses on enterprises with the potential to go beyond MSME status and become national or international champions; it will also support those that make India self-reliant by producing necessary technologies, goods, or services. SRI operates through a mother-daughter structure, with NSIC Venture Capital Fund Limited acting as its mother fund and allocating capital to 60 daughter funds that directly invest in MSMEs using equity or quasi-equity instruments. The mother fund contributes funding in proportion to every rupee raised by the daughter funds, at an exchange ratio of 4:1, providing INR 4 for every INR raised from investors by the daughter funds. Daughter funds then carefully assess each MSME's potential and growth plan before investing. This ensures that funds reach businesses most in need. The scheme is projected to benefit over 6 million MSMEs nationwide, helping them compete at both the national and international levels, thereby creating more jobs, boosting exports, and driving greater economic growth. Furthermore, technological upgrades and R&D in the MSME sector will enhance competitiveness and promote the use of local raw materials, thereby strengthening MSMEs' manufacturing capabilities. MSMEs: MSMEs play an essential role in our economy, providing jobs and essential services across India from small rural communities to major metropolitan centres. They contribute significantly to GDP and exports but often struggle to access enough funds to expand and grow their businesses, increasing revenue streams by hiring more staff or developing new products while decreasing reliance on loans. The SRI Fund is here to assist them with growth equity capital! Unlike traditional loans, this funding model provides capital in exchange for equity ownership in MSMEs' businesses, helping them scale without straining cash flow or entering new markets. The SRI Fund is managed by NSIC Venture Capital Fund Limited, a wholly owned subsidiary of National Small Industries Corporation (NSIC), a Government mini-Ratna corporation operating within the Ministry of Micro, Small and Medium Enterprises. SRI Fund will support only MSMEs that meet certain criteria: they must be registered as sole proprietorships or partnerships, have at least several years of operating history and positive financial growth, provide detailed plans and forecasts, and be committed to social and economic impact as part of their mission. The SRI Fund will assist MSMEs in accessing long-term equity financing through funding from NSIC Venture Capital Fund Limited, an Alternative Investment Fund registered with SEBI as a Category II AIF. Fund investments will then be distributed among SEBI Category I and Category II AIFs dedicated to MSMEs; ultimately, these AIFs will invest directly in MSMEs, bringing together government assistance and private sector expertise to maximize impact and ensure funds reach the businesses that need them. Equity: India's MSMEs play an integral part in its economy. They play an instrumental role in driving the $5 trillion USD in gross domestic product (GDP) and are an essential source of employment and innovation. The Ministry of MSME is working tirelessly towards supporting them for sustained growth. The Ministry has introduced the 'Self-Reliant India (SRI) Fund' as part of its initiative to fund MSMEs by investing in SEBI-registered Category I and Category II Alternative Investment Funds ("Daughter Funds") that have been impanelled with NSIC Venture Capital Fund Limited ("NVCFL"). NVCFL is a wholly owned subsidiary of National Small Industries Corporation Limited - a mini-ratna company under MoMSME. Shri B.B Swain, Secretary for MSME, presided over the launch of BizAmp, the inaugural outreach programme organized by NSIC and its daughter funds under the SRI Fund, at Dimapur, Nagaland, on 4 May 2023. This event focused on capital infusion through NVCFL's SRI Fund while simultaneously assisting MSMEs in the North East Region.