Bank lending to MSME sector sees improvement, says CEA

New Delhi, April 14 (KNN) The flow of bank credit to the micro, small and medium enterprises (MSME) sector is seeing an improvement as the private sector is likely to boost capital expenditure from the second half of FY23, said V Anantha Nageswaran, Chief Economic Advisor (CEA). 

Nageswaran stated that this fiscal year is likely to get better as Bank credit is beginning to pick up, especially in MSME sector.

“Investment from the private sector has been muted for the past many years despite several measures, including corporate tax cuts, taken by the government to reinvigorate it,” he said at an event organised by AIMA.

Citing the RBI (Reserve Bank of India) survey, Nageswaran said a jump is seen in capacity utilisation by the industry from 68 per cent to 74 per cent.

Sharing his views on the GDP growth forecast of 7.2 per cent which was brought down by the central bank, Nageswaran said that RBI has been realistic in the downward revision of GDP. 

With regards to possible revision in the GDP forecast of the Economic Survey, he said the it will be premature to revise the GDP as the financial year has just begun. (KNN Bureau)