PM Modi Says Cabinet Decisions Will Boost MSMEs and Transform India’s Transport Logistics
New Delhi, October 6, 2026: Prime Minister Narendra Modi has said that the latest Union Cabinet decisions will provide a significant boost to India’s Small and Medium Enterprises (SMEs) and help create the next generation of Indian business leaders.
In a social media post, the Prime Minister said the ₹10,000-crore commitment for the SME Growth Fund will provide growth-oriented capital to Indian SMEs and help them scale operations, adopt advanced technologies, expand manufacturing capacity, enter international markets and integrate with global value chains.
The government said the SME Growth Fund is intended to address the gap in long-term growth capital available to small and medium enterprises. The fund will focus significantly on manufacturing-oriented enterprises and will also consider SMEs operating in industrial clusters in Tier-II and Tier-III cities.
Focus on Technology, Manufacturing and Global Markets
According to the government, access to long-term equity capital could enable eligible SMEs to increase their operational scale, invest in technology and manufacturing capacity, expand internationally and undertake strategic investments.
The initiative is also aimed at supporting enterprises in manufacturing, services, technology, innovation-driven sectors and strategic value chains. The government expects the fund to help build a stronger pipeline of Indian companies capable of competing in global markets.
Cabinet Approves Integrated Transport & Logistics Authority
In another major decision, the Union Cabinet approved the establishment of the Integrated Transport & Logistics Authority (ITLA) as a Special Purpose Vehicle to strengthen research, planning, project appraisal, monitoring and impact assessment across India’s transportation and logistics sectors.
The proposed authority is intended to improve coordination among different transport-related ministries and agencies and promote multimodal integration and data-led planning.
ITLA will work on a long-term National Transport Master Plan covering areas including roads, railways, ports and shipping, civil aviation, inland waterways, coastal shipping, urban mobility and logistics.
It will also undertake technical appraisal of central government infrastructure projects costing ₹500 crore or more, monitor their implementation and conduct post-implementation impact assessments.
National Transport Data Repository
A key component of ITLA will be the creation of a National Transport Data Repository (NTDR). The repository is expected to bring together transport and logistics data from multiple sources, including e-way bills, FASTag, VAHAN, GPS-based systems and urban traffic-management systems.
The government says this integrated data approach will support freight-flow analysis, infrastructure planning, project monitoring and impact assessment.
What the Cabinet Decisions Mean
The two decisions focus on different parts of India’s economic infrastructure: the SME Growth Fund is aimed at providing growth capital to small and medium enterprises, while ITLA is designed to improve coordination and long-term planning across the transport and logistics ecosystem.
Prime Minister Modi said the Cabinet decisions are expected to contribute to India’s broader growth trajectory by strengthening entrepreneurship, manufacturing, infrastructure planning and multimodal connectivity.
The government has positioned both initiatives as part of its longer-term efforts to strengthen India’s economic and infrastructure ecosystem and support the country’s development goals toward 2047
