New Delhi: The government is committed to
doubling credit flow to micro, small and medium enterprises,
which employ 6 crore persons and contribute 45 per cent to
India's manufactured goods, Prime Minister Manmohan Singh said
today.
"Credit is the lifeline of any business. The government
is committed to double the flow of credit to MSMEs in five
years," Singh said after giving away national awards to
entrepreneurs in the sector here.
The Prime Minister, who reviewed the performance and
difficulties of the sector with the industry representatives
on Wednesday, said public sector banks increased lending to
MSMEs by 25 per cent in 2008-09.
According to estimates, MSMEs are given credit of about
Rs 1,50,000 crore by PSU banks per annum. There are 2.60 crore
units in the sector which contribute 40 per cent to exports.
The Prime Minister has issued directions for constitution
of a task force to look into the difficulties of MSMEs and
recommend steps within next three months.
He said recent global economic slowdown has had an
adverse impact on the growth of Indian economy. "Micro, small
and medium enterprises have also not remained unaffected," he
said, adding the government has been alive to the concerns.
The two stimulus packages the government announced in
coordination with RBI have been of some help to the MSMEs, he
added.
Bureau Report
First Published: Friday, August 28, 2009, 13:35