NABARD’s UP State Focus Paper Forecasts Credit Potential Of Rs. 7.69 Tn Among Priority Sectors In FY 26

Lucknow, Feb 20 (KNN) Uttar Pradesh anticipates a substantial increase in lending to micro, small, and medium enterprises (MSMEs) for the fiscal year 2025-26, with projections indicating a 52 percent rise to Rs 4.46 trillion compared to Rs 2.92 trillion in FY25. 

This projection aligns with the state government's strategic initiative to achieve a USD 1-trillion economy, according to State Finance Minister Suresh Khanna.

The National Bank for Agriculture and Rural Development (NABARD) has prepared the UP State Focus Paper, which forecasts a comprehensive credit potential of Rs 7.69 trillion across priority sectors for FY26. 

This represents a significant increase of Rs 1.96 trillion, or 34 percent, from the FY25 projections of Rs 5.73 trillion. 

The agricultural sector is expected to see its credit potential rise to Rs 2.77 trillion in FY26 from Rs 2.46 trillion in FY25, while other priority sectors are projected to receive Rs 46,000 crore, including Rs 21,000 crore for housing loans and Rs 6,000 crore for export credit.

During the release of the UP State Focus Paper, Finance Minister Khanna highlighted the state's emphasis on infrastructure development, ease of doing business, and improved law and order to attract investments. 

He noted the successful implementation of over 14,000 projects worth Rs 10 trillion following the UP Global Investors' Summit 2023, with additional projects valued at Rs 6 trillion in development. 

The state's recent participation in the World Economic Forum Summit in Davos resulted in Memorandums of Understanding worth Rs 19,000 crore, further demonstrating UP's growing MSME sector.

The state government has urged financial institutions to recognise UP's expanding credit potential, particularly in agriculture and allied sectors such as farm mechanisation, plantation, fisheries, animal husbandry, and storage facilities. 

To support capital formation and economic growth, the administration has emphasised the importance of ensuring accessible credit. 

Additionally, the government has encouraged banks to improve the Credit-Deposit ratio, especially in Eastern UP and Bundelkhand regions, with a target ratio of 65 percent set for March 2025.

(KNN Bureau)