New Delhi, Nov 13 (KNN) Outlining the importance of credit to the Micro, Small and Medium Enterprises (MSMEs) in the country, Finance Minister Arun Jaitley said that more capital to the state-owned banks is likely to push the Public Sector Banks (PSBs) to infuse credit to the MSMEs.

The Finance Minister made these remarks on the sidelines of a banking conclave in the NCR.

Jaitley further said that to increase credit flow to MSMEs so that the third engine of private investment is  also to be fired up to propel growth and create jobs.

Commenting upon the importance of the MSME sector in the country, Jaitley said that the sector possess the potential both for generating employment as well as for adding to the growth of the economy.

"If you look at the big picture of the economy where governments are spending a lot of public money, a lot of foreign investment is coming in” the Minister said.

"We need the third engine (private investment) also to fire and a robust private sector and MSME sector so that the optimum growth rate which we have the potential for can be reached” he further added.

Jaitley informed that the government is looking forward to put in more capital through bonds and banks equity expansion that is expected to yield good results in the long run. (KNN/DA)