MSMEs make 95% of FY21 Loans in Electrical machinery industry

New Delhi, 7 Jan (KNN) As per a report by SIDBI and credit bureau Crif High Mark, as of March 2021 in the electrical machinery industry there have been 3 lakh credit borrowers, and the micro, small and medium enterprises (MSMEs) constituted 95 per cent of the overall number of loans and 30 per cent of the overall credit value. 

The number of active loans stood at 1,99,490 while the credit value was Rs 94,800 crore with a year-on-year growth of 3.2 per cent even as there was a 5.5 per cent quarter-on-quarter decline, as published in FE. 

During FY21, The total number of loans disbursed stood at 1,16,080 with a total credit value of INR 34,320 crore, said the report. 

The report highlighted the position of India as the third-largest producer and the second-largest consumer of electricity globally.

India has an installed power capacity of 383.37 BW as of May 2021, the report said. 

Speaking about the sector’s contribution to the country’s manufacturing production, Sivasubramanian Ramann, CMD, SIDBI, “The sector contributes to 8 per cent of the country’s manufacturing production, 1.5 per cent to the country’s GDP, and 1.5 per cent to the country’s exports.” 

“The government has a target of 30 per cent electric vehicle penetration by 2030 with incentives to make domestic manufacturing economically viable. This presents a huge opportunity for domestic manufacturers in the electrical machinery sector and has a promising future with exponential growth,” added Ramann.