Credit flow to MSMEs to double in five years, says PM

New Delhi, Aug 28 (PTI) Indian 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 Friday.

"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 Reserve Bank of India (RBI) have been of
some help to the MSMEs, he added. PTI RK
ANU