Government Schemes Current Affairs 7 October 2026

Last Updated: 07 October 2026, 10:18 AM IST | Reviewed by Vijay Sah

Government Schemes Current Affairs 7 October 2026 covers the latest verified government-scheme developments relevant for competitive-exam preparation. The most recent major updates include the ₹10,000 crore SME Growth Fund, the expansion of permissible works under VB–G RAM G, a review of financial inclusion schemes and recent progress under PM-SETU.

As of the morning of 7 October 2026, the latest official scheme-related developments available from government sources are mainly from 6 October and the preceding few days. They include measures covering rural employment, small businesses, financial inclusion, skill development and electric mobility.

Key points at a glance: SME Growth Fund, VB–G RAM G, financial inclusion schemes, PM-SETU, PM E-DRIVE and recent government support measures are the key scheme-related topics for revision.

Government Schemes Current Affairs: Quick Highlights

Scheme / Initiative	Latest Update
SME Growth Fund	The Union Cabinet approved a government commitment of ₹10,000 crore towards establishing the SME Growth Fund for direct equity investments in small and medium enterprises.
VB–G RAM G	The Ministry of Rural Development notified 375 permissible works under the new rural works framework.
Financial Inclusion Schemes	The Department of Financial Services reviewed PMJDY, PMJJBY, PMSBY, APY, PMMY, Stand-Up India, PM SVANidhi, PM Vishwakarma, PM Surya Ghar and KCC.
PM-SETU	The scheme is upgrading 1,000 Government ITIs through a Hub-and-Spoke model and industry-aligned training.
PM E-DRIVE	The scheme has an outlay of ₹11,900 crore and has been extended until March 2028 to support electric mobility.

SME Growth Fund: ₹10,000 Crore Commitment

1. Cabinet Approves SME Growth Fund

The Union Cabinet approved a government commitment of ₹10,000 crore towards establishing the Small and Medium Enterprises Growth Fund on 6 October 2026. The fund is intended to provide direct equity support to growth-oriented SMEs.

The initiative was included among the measures announced in Union Budget 2026-27 for providing equity, liquidity and professional support to the MSME ecosystem. The fund is expected to support enterprises across manufacturing, services, technology, innovation-driven sectors and strategic value chains.

Why it matters: Equity capital can help viable businesses expand without relying entirely on conventional borrowing.

Exam Point: SME Growth Fund — ₹10,000 crore government commitment — approved by the Union Cabinet in October 2026.

2. Focus on High-Potential Small and Medium Enterprises

The SME Growth Fund is designed to provide patient equity capital to high-potential enterprises that demonstrate business viability and scalability. The government has positioned the initiative as a growth-capital measure rather than a conventional subsidy programme.

According to the PIB factsheet, as of 6 October 2026, registrations under Udyam and the Udyam Assist Platform had reached about 9.78 crore, with registered MSMEs reporting about 43.28 crore employment opportunities.

Why it matters: The scheme links public capital support with the expansion of enterprises that can contribute to employment, manufacturing, exports and innovation.

Exam Point: AIF stands for Alternative Investment Fund, a privately pooled investment vehicle regulated under India's securities framework.

VB–G RAM G: 375 Permissible Works

3. New Schedule Under VB–G RAM G Act

The Ministry of Rural Development notified a new Schedule of Permissible Works under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), known as VB–G RAM G, on 6 October 2026.

The new schedule contains 375 permissible works, compared with 266 works under the previous framework. This represents a 41% expansion in the number of permissible works.

Why it matters: The expanded list gives the rural works framework a broader set of activities connected with water, infrastructure, livelihoods and disaster preparedness.

Exam Point: VB–G RAM G's new Schedule of Permissible Works contains 375 works.

4. Four Thematic Areas Under the New Work Schedule

The 375 works have been organised around four broad themes: Water Security, Core Rural Infrastructure, Livelihood-related Infrastructure, and Special Works for Extreme Weather Events and Disaster Preparedness.

The Ministry of Rural Development said the new framework is intended to make rural works more closely connected with durable community assets and local development needs.

Why it matters: Questions can ask the number of permissible works, the percentage expansion or the four thematic categories.

Exam Point: The four pillars are Water Security, Core Rural Infrastructure, Livelihood-related Infrastructure and Special Works for Extreme Weather Events and Disaster Preparedness.

Financial Inclusion Schemes

5. Government Reviews Major Financial Inclusion Schemes

The Department of Financial Services reviewed the progress of major financial inclusion schemes with senior executives of public-sector and private-sector banks on 6 October 2026.

The review covered PMJDY, PMJJBY, PMSBY, Atal Pension Yojana, PMMY, Stand-Up India, PM SVANidhi, PM Vishwakarma, PM Surya Ghar and Kisan Credit Card, among other initiatives.

Why it matters: These schemes cover banking access, insurance, pensions, credit, entrepreneurship and livelihood support for different sections of the population.

Exam Point: PMJDY stands for Pradhan Mantri Jan-Dhan Yojana.

6. Banks Asked to Strengthen Digital Outreach

During the review meeting, banks were urged to improve digital outreach and focus on end-to-end digital processing of loans. The Department of Financial Services also reviewed the progress of various financial inclusion programmes.

Digital delivery is increasingly being used to reduce paperwork and make formal financial services easier to access. The focus on loan processing is particularly relevant for small borrowers and micro-enterprises.

Why it matters: Digital financial services can reduce transaction time and make access to formal banking and credit more convenient.

Exam Point: DFS stands for Department of Financial Services under the Ministry of Finance.

PM-SETU: Skill Development Scheme

7. PM-SETU Focuses on Upgrading 1,000 ITIs

PM-SETU, or Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs, focuses on upgrading 1,000 Government Industrial Training Institutes through a Hub-and-Spoke model and industry-aligned training.

The scheme was launched on 4 October 2025 and has a total outlay of ₹60,000 crore, comprising ₹30,000 crore from the Centre, ₹20,000 crore from States and ₹10,000 crore from industry.

Why it matters: The scheme connects vocational training with changing industry requirements and aims to improve the quality and relevance of ITI education.

Exam Point: PM-SETU has a total outlay of ₹60,000 crore.

8. PM-SETU Progress After One Year

According to a PIB backgrounder published on 3 October, 850 ITIs had been identified and 14 ITI clusters approved under the implementation process. The programme also provides for capacity augmentation of five National Skill Training Institutes through National Centres of Excellence.

New-age courses and industry participation are part of the scheme's approach to modernising vocational education.

Why it matters: The progress figures are useful for exams because PM-SETU is closely linked with skill development, ITIs and employability.

Exam Point: PM-SETU uses a Hub-and-Spoke model for upgrading Government ITIs.

PM E-DRIVE Scheme

9. PM E-DRIVE Supports Electric Mobility

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme supports the expansion of electric mobility in India. The scheme was launched in September 2024 and its implementation has been extended until March 2028.

The scheme has an outlay of ₹11,900 crore and covers support for electric vehicles, charging infrastructure and testing facilities. The government has also provided support for e-buses and other electric mobility measures.

Why it matters: The scheme connects vehicle electrification with charging infrastructure and domestic manufacturing capacity.

Exam Point: PM E-DRIVE outlay — ₹11,900 crore; implementation extended until March 2028.

10. EV Adoption and Charging Infrastructure

The PIB factsheet states that PM E-DRIVE provides incentives for around 28.30 lakh electric vehicles. As of June 2026, about 26.59 lakh EV sales had been recorded under the scheme.

The programme also supports public charging infrastructure and testing facilities. These measures are intended to address some of the practical requirements for wider electric-vehicle adoption.

Why it matters: Electric mobility depends not only on vehicle incentives but also on charging infrastructure and a domestic manufacturing ecosystem.

Exam Point: PM E-DRIVE is implemented by the Ministry of Heavy Industries.

Government Schemes One-Liners

1. The Union Cabinet approved a ₹10,000 crore commitment for the SME Growth Fund.

2. The SME Growth Fund is intended to provide direct equity support to growth-oriented SMEs.

3. The new VB–G RAM G work schedule contains 375 permissible works.

4. The VB–G RAM G schedule represents a 41% expansion over the previous 266 works.

5. The new rural works are organised under four thematic pillars.

6. DFS reviewed PMJDY, PMJJBY, PMSBY, APY, PMMY, Stand-Up India and other financial inclusion schemes.

7. Banks were urged to improve digital outreach and end-to-end digital loan processing.

8. PM-SETU focuses on upgrading 1,000 Government ITIs.

9. PM-SETU has a total outlay of ₹60,000 crore.

10. PM E-DRIVE has an outlay of ₹11,900 crore and has been extended until March 2028.

Government Schemes Current Affairs MCQs

Q1. What amount has the Union Cabinet committed towards establishing the SME Growth Fund?
A. ₹5,000 crore
B. ₹7,500 crore
C. ₹10,000 crore
D. ₹15,000 crore
Correct Answer: C. ₹10,000 crore

Q2. How many permissible works are included in the new VB–G RAM G Schedule?
A. 266
B. 300
C. 350
D. 375
Correct Answer: D. 375

Q3. The new VB–G RAM G work schedule represents what percentage expansion over the previous framework?
A. 21%
B. 31%
C. 41%
D. 51%
Correct Answer: C. 41%

Q4. Which department reviewed the progress of financial inclusion schemes with banks?
A. Department of Revenue
B. Department of Financial Services
C. Department of Commerce
D. Department of Expenditure
Correct Answer: B. Department of Financial Services

Q5. PM-SETU focuses on upgrading how many Government ITIs?
A. 500
B. 750
C. 1,000
D. 1,500
Correct Answer: C. 1,000

Q6. What is the total outlay of PM-SETU?
A. ₹30,000 crore
B. ₹40,000 crore
C. ₹50,000 crore
D. ₹60,000 crore
Correct Answer: D. ₹60,000 crore

Q7. Until when has implementation of PM E-DRIVE been extended?
A. March 2027
B. December 2027
C. March 2028
D. December 2028
Correct Answer: C. March 2028

Q8. What is the outlay of the PM E-DRIVE Scheme?
A. ₹9,500 crore
B. ₹10,900 crore
C. ₹11,900 crore
D. ₹15,000 crore
Correct Answer: C. ₹11,900 crore

Quick Revision

Scheme	Important Fact
SME Growth Fund	₹10,000 crore government commitment for direct equity investments in SMEs.
VB–G RAM G	New Schedule contains 375 permissible works.
Financial Inclusion	DFS reviewed PMJDY, PMJJBY, PMSBY, APY, PMMY and other schemes with banks.
PM-SETU	Upgrades 1,000 Government ITIs through a Hub-and-Spoke model.
PM-SETU Outlay	Total outlay is ₹60,000 crore.
PM E-DRIVE	₹11,900 crore outlay; implementation extended until March 2028.
PM E-DRIVE EVs	Incentives for around 28.30 lakh EVs; about 26.59 lakh sales recorded by June 2026.

Final Takeaway

The latest government-scheme updates cover SME finance, rural works, financial inclusion, skill development and electric mobility.

The ₹10,000 crore SME Growth Fund and the 375-work VB–G RAM G schedule are the most recent major developments from 6 October 2026.

PM-SETU and PM E-DRIVE remain useful revision topics because their objectives, financial outlays and implementation details are frequently relevant to competitive examinations.

For exams, remember the key figures: ₹10,000 crore for the SME Growth Fund, 375 works under VB–G RAM G, ₹60,000 crore for PM-SETU and ₹11,900 crore for PM E-DRIVE.

Frequently Asked Questions

What are the latest Government Schemes Current Affairs for 7 October 2026?

The latest verified scheme-related developments available by the morning of 7 October include the SME Growth Fund, VB–G RAM G, financial inclusion schemes, PM-SETU and PM E-DRIVE.

What is the SME Growth Fund?

The SME Growth Fund is an initiative for providing direct equity support to growth-oriented small and medium enterprises. The Union Cabinet approved a government commitment of ₹10,000 crore towards its establishment.

How many works are included under the new VB–G RAM G schedule?

The Ministry of Rural Development notified 375 permissible works under the new rural works framework.

What is PM-SETU?

PM-SETU stands for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs. It focuses on upgrading 1,000 Government ITIs through industry-aligned training.

What is the total outlay of PM-SETU?

PM-SETU has a total outlay of ₹60,000 crore, comprising contributions from the Centre, States and industry.

What is the PM E-DRIVE Scheme?

PM E-DRIVE is a government scheme supporting electric mobility, including EV adoption, charging infrastructure and related testing facilities. Its implementation has been extended until March 2028.

Which financial inclusion schemes were reviewed by DFS?

The review covered PMJDY, PMJJBY, PMSBY, Atal Pension Yojana, PMMY, Stand-Up India, PM SVANidhi, PM Vishwakarma, PM Surya Ghar and KCC, among others.

What is the latest important figure related to PM E-DRIVE?

The scheme has an outlay of ₹11,900 crore and provides incentives for around 28.30 lakh electric vehicles, with about 26.59 lakh EV sales recorded by June 2026.

Sources referred: Press Information Bureau, Ministry of Rural Development, Ministry of Finance, Department of Financial Services and Ministry of Heavy Industries.