Expressing displeasure over scanty credit flow to small- and medium-sized enterprises (SMEs), the Government will set a target for SME lending and asked banks to step up advances to the sector.
"The small-scale industry is not a dying sector. The number of live SMEs have grown, so as turnover, export and employment. But the credit flow to SMEs has declined," the Union Finance Minister, Mr P Chidambaram, said at a function to inaugurate the SIDBI development centre at Bandra-Kurla Complex here.
On the lines of thrust given to farm sector last fiscal, the Government would set a target for SME credit, the Minister said.
Banking entities should work with Small Industries Development Bank of India (SIDBI) and the Government to sharply increase credit flow to SME sector, he added.
SIDBI's outstanding credit has grown from Rs 5,000 crore in 1991-92 to Rs 11,000 crore in 2004-05, which is a sedate pace of growth.
