Outstanding credit to Medium Enterprises decreased by 5.6% over the year
Updated: Oct 14, 2015 11:43:31am
New Delhi, Oct 14 (KNN) The outstanding credit amount for a sector is considered to be a good measure for the growth curve of any sector. Under this parameter the ‘Medium’ sector of Indian industry is continuously shrinking. Data released by Reserve Bank of India for end August, 2015 shows the outstanding credit to the Medium sector has shrunk by 5.6 per cent over one year, i.e. between August 2014 and August 2015.
Not only that this reduction in credit offtake is happening over an 8.8 per cent decrease in credit offtake between August 2013 and August 2014.
The Medium enterprises though may be smaller in number, occupy a significant position in the industrial map of India. Most of these enterprises are growth oriented and have a vision of graduating to large enterprises. They can also afford to acquire modern technologies and manufacturing techniques to enhance productivity and quality, the two elements which bring success in marketplace. The decrease in outstanding credit to this sector shows everything is not rosy in these enterprises.
MSME Development Act, 2006 defines Medium enterprises as enterprises with investment in plant and machinery between 5 and 10 crores. While the investment limit may be quite low as per the global definition for a Medium enterprise, in Indian context, they are considered to be the powerhouse for efficient manufacturing and in the forefront of Make in India mission. The continuous decrease in credit offtake by the sector, over the years, even during the last six months should be a matter of concern for the policy makers. (KNN Bureau)
Not only that this reduction in credit offtake is happening over an 8.8 per cent decrease in credit offtake between August 2013 and August 2014.
The Medium enterprises though may be smaller in number, occupy a significant position in the industrial map of India. Most of these enterprises are growth oriented and have a vision of graduating to large enterprises. They can also afford to acquire modern technologies and manufacturing techniques to enhance productivity and quality, the two elements which bring success in marketplace. The decrease in outstanding credit to this sector shows everything is not rosy in these enterprises.
MSME Development Act, 2006 defines Medium enterprises as enterprises with investment in plant and machinery between 5 and 10 crores. While the investment limit may be quite low as per the global definition for a Medium enterprise, in Indian context, they are considered to be the powerhouse for efficient manufacturing and in the forefront of Make in India mission. The continuous decrease in credit offtake by the sector, over the years, even during the last six months should be a matter of concern for the policy makers. (KNN Bureau)
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