NABARD Projects Credit Flow Of Rs 5.73 Lakh Crore Into Priority Sectors For UP

Lucknow, Jan 16 (KNN) The National Bank for Agriculture and Rural Development (NABARD), has anticipated a substantial credit inflow of Rs 5.73 trillion into Uttar Pradesh's (UP) priority sectors for the fiscal year 2024-25, as outlined in the State Focus Paper. The identified priority sectors include Micro, Small, and Medium Enterprises (MSMEs), agriculture and the service sector.

Compared to the aggregate credit flow of Rs 3.75 trillion in FY24, the projected advances of Rs 5.73 trillion indicate an impressive Year-on-year (YoY) growth of 52 per cent.

NABARD reports further specifies that the agriculture and MSME sectors are expected to receive loans worth Rs 2.46 trillion and Rs 2.92 trillion, respectively.

In the coming fiscal year, agricultural loans may experience a modest YoY growth of 6 per cent, while the MSME sector is poised for a substantial uptick of 178 percent, jumping from Rs 1.05 trillion in 2023-24 to Rs 2.92 trillion.

Emphasising the pivotal role of credit as a catalyst for growth, UP's Finance Minister, Suresh Khanna, has also urged bankers to enhance the state's credit deposit (CD) ratio.

The State Focus Paper consolidated credit potential at the ground level for all 75 districts. Based on this paper, the annual credit plan for 2024-25 will be finalised by the State Level Bankers' Committee (SLBC) in UP.

Additionally, the state is actively addressing the enhancement of farm exports by improving harvest quality, with a particular focus on millet production, where UP accounts for 20 percent of national output but only one percent of exports.

Sanjay Kumar Dora, Chief General Manager of NABARD in UP, mentioned that the state is identified as the "growth engine" of India, projecting an estimated growth rate of 19.2 percent.

Highlighting the state's progress, he highlighted that UP has ascended to the second position from the 14th in ease of doing business since 2017, underscoring the need to further boost farm credit flow.

(KNN Bureau)