Mumbai, Dec 1 (KNN) The credit deployment to industry including the micro, small and medium enterprises (MSME) sector has fallen by 4.6 per cent during March to October, 2016 period, which had fallen by 0.3 per cent during the same period previous year.

RBI said, "Credit to industry contracted by 1.7 per cent in October 2016 in contrast with an increase of 4.6 per cent in October 2015. Major sub-sectors which witnessed deceleration/contraction in credit include infrastructure, food processing, gems and jewellery and basic metal and metal products."

According to the data released by RBI on Deployment of Gross Bank Credit by Major Sectors, the credit deployment to MSMEs and Large industries has fallen by 1.7 per cent during October 30, 2015 to October 28, 2016, which had improved by 4.6 per cent during October 31, 2014 to October 30, 2015.

The percentage of fall in credit to the medium sector was 5.3 per cent during March to October, 2016 period, which had fallen by 9.5 per cent during the same period last year.

Meanwhile, the credit deployment to the large sector has fallen by 4.6 per cent during March to October, 2016 period, reveals the data.

The credit deployment to the Micro & Small Enterprises under Priority Sector Lending too has plunged to Rs 8468 billion in October 2016, which was Rs 8200 billion in October 2015.

The credit to manufacturing sector under Priority Sector has gone down to Rs 3374 billion in October 2016 from Rs 3702 billion in October 2015.

The Export Credit under Priority Sector has shown a growth of 73.2 per cent during March to October, 2016. Even in rupees terms, the export credit has doubled to Rs 734 billion as on October 28, 2016, as compared to Rs 310 billion on October 30, 2015.

According to an IFC Report, MSMEs in developing countries face an estimated financing gap of $2.1 to $2.6 trillion. (KNN Bureau)