Banking Sector Must Be Liberal in Lending to MSMEs: UP Finance Minister

Lucknow, Jun 26 (KNN) In a bid to stimulate economic growth, Uttar Pradesh Finance Minister Suresh Kumar Khanna has called on the banking sector to adopt a more liberal and cooperative approach in lending to cottage, small, and medium enterprises (MSMEs).

Speaking at the two-day 'Uttar Pradesh MSME Conclave' organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Wednesday, Khanna emphasised the need to increase the credit-deposit ratio to propel the state's economy forward.

"While banks should take concrete steps to protect their loans, they should also be more liberal in their lending practices," Khanna stated.

He stressed that an increase in the CD ratio would enable MSMEs to boost their industries and contribute more significantly to the state's economic growth.

The Finance Minister highlighted the government's resolve to make India self-reliant, urging every Indian to embrace this vision.

He also called upon MSME units and startups to focus on innovation and develop solutions that address societal needs, keeping pace with technological advancements.

Khanna showcased the state's economic progress, noting that exports have nearly doubled since the BJP came to power in Uttar Pradesh in 2017. "Today, the state's exports stand at Rs 1.76 lakh crore," he revealed.

The minister also outlined ambitious plans to increase the state's Gross State Domestic Product (GSDP) from the current Rs 25 lakh crore to Rs 32 lakh crore.

The conclave also witnessed the exchange of a Memorandum of Understanding (MoU) between ASSOCHAM and IIT Kanpur, signalling a commitment to fostering innovation and growth in the MSME sector.

As Uttar Pradesh continues to focus on economic development, the government's push for increased bank lending to MSMEs could play a crucial role in achieving its growth targets and strengthening the state's position as an economic powerhouse.

(KNN Bureau)