Lok Sabha Question No. 5019 (UNSTARRED), answered on 2018-03-26
Subject: Credit Flow to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: VINAYAK BHAURAO RAUT, ANANDRAO  ADSUL, Shrirang Appa Barne, DHARMENDRA YADAV

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION  No. 5019 TO BE ANSWERED  ON 26.03.2018

## CREDIT FLOW TO MSMEs

## 5019.       SHRI VINAYAK BHAURAO RAUT:

SHRI ANANDRAO ADSUL:

SHRI SHRIRANG APPA BARNE:

SHRI DHARMENDRA YADAV:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

(a) whether Micro, Small and Medium Enterprises (MSMEs) employ over 100 million people and account for 37 per cent of the GDP and 40 per cent of the country's export and if so, the details thereof;

(b) whether  MSMEs have been facing acute shortage of funds and if so, the details thereof;

(c) whether despite the Governments push on improving credit flow to the MSMEs, only seven out of India's 27 State-owned banks have achieved the loan growth target for the sector and if so, the details thereof; and

- (d) the corrective steps taken by the Government to achieve the desired growth in MSME sector?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a): As per the data received from 73 rd round of the National Sample Survey on 'Unincorporated Non-Agricultural  Enterprises  (excluding  Construction)',  conducted  by  National  Sample  Survey Office (NSSO), Ministry of Statistics & Programme Implementation, during July 2015 to June 2016, the total employment in the MSME sector was 1109.89 lakh persons.

As  per  the  information  received  from  the  Central  Statistics  Office  (CSO),  Ministry  of Statistics  &  Programme implementation, Govt. of India, the contribution of  MSME Sector in the country's Gross Domestic Product (GDP) at current price in 2016-17 was 28.9%.

As per the  information  received  from  Directorate  General  of  Commercial  Intelligence  and Statistics,  M/o  Commerce  and  Industry,  the  share  of  453  MSME  related    products  at  the  4-digit Indian Trade Classification (Harmonised System) (ITC-HS) in the exports for the years 2016-17 and 2017-18 (till December, 2017) is 49.69% and 48.97% (provisional), respectively.

(b)&(c): As per the data received from the Reserve Bank of India (RBI), the status of lending to MSE sector by Public Sector Banks is given in the Annexure.

(d): The Government has taken measures to revamp the Credit Guarantee Scheme implemented through  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises  (CGTMSE)  to  facilitate further access of MSMEs to credit. It also supports the MSME sector with its various schemes and programmes like Prime Minister's Employment Generation Programme (PMEGP), Micro and Small Enterprises Cluster Development Programme (MSE-CDP) and various skill development programmes.

***

## Annexure

## Annexure referred to in reply to part (b)&(c)  of the Lok Sabha Unstarred Question No. 5019 for answer on 26.03.2018

## Status of achievement of targets for lending to MSE sector by Public Sector Banks

| Name of the bank   | Micro / MSE %   | Y-o-Y growth Micro units   | Y-o-Y growth credit to MSE   |
|--------------------|-----------------|----------------------------|------------------------------|
|                    | Target 60%      | Target 10%                 | Target 20%                   |
| S B B J            | 61.15           | -9.50                      | -0.12                        |
| S B HYD            | 37.18           | 0.99                       | -44.85                       |
| S B I              | 54.99           | 0.01                       | 9.13                         |
| S B MYSORE         | 51.31           | 1.21                       | -22.47                       |
| S B PATIALA        | 63.04           | -7.37                      | -1.94                        |
| S B TRA'CORE       | 44.87           | 19.75                      | -20.54                       |
| TOTAL 'A'          | 53.65           | -0.57                      | -1.65                        |
| ALL 'BAD BANK      | 53.95           | 11.74                      | 5.46                         |
| ANDHRA BANK        | 58.04           | 14.03                      | 19.62                        |
| BOBARODA           | 62.86           | 19.67                      | 1.79                         |
| B OINDIA           | 50.16           | 11.04                      | 6.34                         |
| BOMAHARASH         | 52.31           | 5.31                       | -6.20                        |
| BHARMAHBNK         | 30.61           | 10.34                      | -21.45                       |
| CANARABANK         | 52.28           | 16.95                      | 7.00                         |
| CENTRAL BANK       | 37.67           | 3.75                       | -3.10                        |
| CORPN BANK         | 45.55           | 9.31                       | 3.60                         |
| DENA BANK          | 60.33           | -2.67                      | -8.65                        |
| IDBI BANK LTD.     | 72.41           | 35.54                      | 2.37                         |
| INDIAN BANK        | 64.28           | 10.27                      | 12.33                        |
| IOB                | 50.77           | -31.84                     | 6.14                         |
| OBC                | 50.72           | -16.29                     | 4.72                         |
| P&SBANK            | 52.88           | 16.27                      | -0.79                        |
| P N B              | 40.43           | 19.39                      | -9.39                        |
| SYNDICATE BK       | 64.95           | 0.69                       | -0.06                        |
| UCO BANK           | 60.09           | 12.27                      | -0.36                        |
| UNION BANK         | 47.87           | 7.39                       | 12.89                        |
| UNITED BANK        | 63.62           | -7.71                      | 4.82                         |
| VIJAYA BANK        | 52.02           | 13.42                      | 7.33                         |
| TOTAL 'B'          | 52.95           | 6.51                       | 2.73                         |
| TOTAL 'A+B'        | 53.07           | 5.46                       | 1.95                         |

Source: Reserve Bank of India