Empowering MSMEs with News & Insights

NABARD Projects 69% Increase In Priority Sector Credit for Tamil Nadu, Sets Rs 8.3 Lakh Cr Target for FY25

Updated: Mar 06, 2024 01:19:17pm

NABARD Projects 69% Increase In Priority Sector Credit for Tamil Nadu, Sets Rs 8.3 Lakh Cr Target for FY25

Chennai, Mar 6 (KNN) The National Bank for Agriculture and Rural Development (NABARD) has estimated the priority sector credit potential for Tamil Nadu at Rs 8.3 lakh crore in FY25.

This represents a substantial increase of 69 per cent over the corresponding year of 2023-24, which stood at Rs 4.9 lakh crore.

The State Focus Paper (SFP) 2024-25, released by NABARD on Tuesday, estimated the Potential Linked Credit Plans (PLPs) for agriculture at Rs 3.7 lakh crore.

This was followed by advances to MSMEs at nearly Rs 3.2 lakh crore, with other priority sectors standing at Rs 1.4 lakh crore. These sectors include export credit, education, housing, renewable energy, and social infrastructure involving bank credit.

The Annual Credit Plan (ACP) target for the state during the current fiscal (2023-24) was fixed at more than Rs 7 lakh crore.

Releasing the SFP, Tamil Nadu Finance Minister Thangam Thennarasu acknowledged the challenges faced by the state due to natural disasters in 2023. Despite these challenges, the state aims to contribute significantly towards the goal of achieving a USD 5 trillion economy for India by 2026-27.

Thennarasu emphasised the importance of agriculture, which serves as the livelihood for around 45 per cent of the rural population in Tamil Nadu. He stressed that even minor interventions in this sector could have a major impact on the state's economic development.

Additionally, the finance minister highlighted the importance of motivating startups, especially in agriculture and service sectors, and emphasised the need for creating more Farmer Producer Organisations (FPOs).

In his address, Finance Secretary T Udhayachandran highlighted the significance of the credit economy, revealing a budget of Rs 3.5 lakh crore. He noted that the credit implications were almost 2.5 times the size of the budget.

Udhayachandran also mentioned that last year, the size of ACP was raised to Rs 7 lakh crore, a target that was successfully achieved.

NABARD Chief General Manager R Shankar Narayan announced that NABARD, in partnership with the Government of Tamil Nadu, will further enhance rural infrastructure, signalling a commitment to support the state's economic growth.

(KNN Bureau)


    Be first to give your comments.


Required fields are marked *