The overall industrial credit, which slackened in the first half of 2007-08, showed signs of recovery in the latter part with sectors like jute textiles, leather, basic metals and engineering goods registering a robust credit rate growth, the Economic Survey said on Thursday.
"During April-August 2007, the outstanding gross deployment of bank credit increased only by 2.8 per cent from end-March 2007, while the corresponding increase stood at 8.5 per cent during 2006. However, the gap between April-November 2006 and April-November 2007 has substantially narrowed," the Survey tabled in Parliament said.
Quoting figures from the Reserve Bank of India, it said the outstanding industry credit (small, medium and large) as on November 23, 2007 was Rs 7,55,440 crore as compared to Rs 6,03,623 as on November 24, 2006.
The total outstanding credit as on March 31, 2007 stood at Rs 6,97,334 crore as compared to Rs 5,50,444 as on March 31, 2006. The sectors, which registered a low credit growth rate were quarrying, mining and wood products during the period under review over a high base achieved by the end-March.
Some other sectors recorded high growth. "Among sectors that experienced high rates of production growth during April-November 2007 were jute textiles, leather, leather products, basic metals and engineering goods," the survey said.
The credit growth also has been robust for these sectors, it added. Encouragingly, the outstanding credit to 'transport equipment' group, which has witnessed a slowdown in production, has grown significantly from end-March 2007.
"Besides the near-doubling of the rate of credit growth to infrastructure augurs well for many infrastructure - dependent industrial groups and for the economy as a whole," it added.
