Industrial credit on recovery path: Economic Survey

Industrial credit on recovery path: Economic Survey
PTI
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First Published: Thu, Feb 28 2008. 05 06 PM IST
Updated: Thu, Feb 28 2008. 05 06 PM IST
New Delhi: The overall industrial credit, which slackened in the first half of 2007-08, showed signs of recovery in the latter part with sectors like jute textiles, leather, basic metals and engineering goods registering a robust credit rate growth, the Economic Survey said on Thursday.
“During April-August 2007, the outstanding gross deployment of bank credit increased only by 2.8% from end-March 2007, while the corresponding increase stood at 8.5% during 2006. However, the gap between April-November 2006 and April-November 2007 has substantially narrowed,” the Survey tabled in Parliament said.
Quoting figures from the Reserve Bank of India, it said the outstanding industry credit (small, medium and large) as on 23 November, 2007 was Rs7,55,440 crore as compared to Rs6,03,623 as on 24 November, 2006.
The total outstanding credit as on 31 March, 2007 stood at Rs6,97,334 crore as compared to Rs5,50,444 as on 31 March, 2006.
The sectors which registered a low credit growth rate were quarrying, mining and wood products during the period under review over a high base achieved by the end-March. Some other sectors recorded high growth.
“Among sectors that experienced high rates of production growth during April-November 2007 were jute textiles, leather, leather products, basic metals and engineering goods,” the survey said. The credit growth also has been robust for these sectors, it added.
Encouragingly, the outstanding credit to ‘transport equipment´ group, which has witnessed a slowdown in production, has grown significantly from end-March 2007.
“Besides the near-doubling of the rate of credit growth to infrastructure augurs well for many infrastructure- dependent industrial groups and for the economy as a whole,” it added.
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First Published: Thu, Feb 28 2008. 05 06 PM IST