Home / Knowledge / News / Declining credit does not augur well for MSME sector - FIEO Chief
Declining credit does not augur well for MSME sector - FIEO Chief
Jul '09
Mr A Sakthivel, President, Federation of Indian Export Organisations (FIEO) while commenting on the latest update of the RBI stated that the non-food credit had declined to Rs.3,58,494 crores in 2009 from Rs.4,88,719 crores in 2008.The percentage variation for the year-on-year figure is 36.32%.

The FIEO Chief, however, observed that while the bank credit to the commercial sector had declined in 2009 on a year-on-year basis to 15.5% (Rs.4,05,176), the credit offtake in 2008 was 24.5%.At the same time, the net bank credit to the government on a year-on-year basis had increased from Rs.80,371 crores to Rs.4,54,313 crores which is nearly a five fold increase over the previous year.

Elaborating further Mr Sakthivel stated that investments in Government securities had almost become three fold to Rs.3,24,213 crores at Rs.1,42,800 crores in 2008 while PLR's had remained constant in range 11% to 12.25% inspite of the declining offtake to the commercial sector.

President, FIEO stated that a declining credit offtake, higher investments in government securities besides interest rates which show no sign of moving southwards may not augur well for the MSME export sector in the existing slow down.

Federation of Indian Export Organisations

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search