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Higher Credit Flows Indicate Industrial Turnaround
BUSINESS ECONOMICS
|May 16-31, 2018
Higher Credit Flows Indicate Industrial Turnaround
Finance Minister Arun Jaitley must be a happy man. Vindicating IMF and World Bank’s high GDP growth projections for 2018-19, India’s investment scenario has improved considerably. Reflecting the trend the non-food credit flows of banks to commercial sector have increased steadily in recent months.
After remaining depressed for nearly two years, credit flows started rising since June 2017 and increased to double digits last December. The resurgence in credit growth was observed across bank groups, though the pace of growth continues to vary among bank groups. The year-on-year growth rate of bank credit for scheduled banks was 11.1% as on March 16, 2018.
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