Optimistic Credit Growth for MSMEs
The West Bengal government is optimistic about surpassing its ambitious Rs 1.53 lakh crore credit target for the Micro, Small, and Medium Enterprises (MSMEs) sector in the 2024-25 fiscal year. This achievement would mark a 7.7% credit growth compared to the Rs 1.42 lakh crore recorded in the previous fiscal year. Amit Mitra, principal chief advisor to Chief Minister Mamata Banerjee and the state’s finance department, highlighted that 77% of the target has already been met in the first two quarters of FY’25.
Increased Credit Flow to Self-Help Groups (SHGs)
Credit allocation to Self-Help Groups (SHGs) is also on an upward trajectory. The state has set a target of Rs 30,000 crore for SHGs in FY’25, up from Rs 25,000 crore achieved in the previous year. West Bengal boasts 12.14 lakh SHGs, which play a vital role in enhancing human capital, driving demand, and fostering economic growth.
Policy Approach and Economic Resilience
Mitra emphasized the state’s distinct bottom-up economic strategy, contrasting it with the Centre’s approach. This policy has contributed to Bengal’s unemployment rate remaining below the national average. Speaking at a summit organized by the Bengal Chamber of Commerce and Industry and the Rising Asia Foundation, Mitra noted that despite national reductions in corporate taxes, private sector investments have not met anticipated levels.
Commitment to Inclusive Growth
West Bengal’s focused efforts in boosting credit flow and empowering SHGs underscore its commitment to fostering inclusive growth. With its unique policy direction, the state aims to sustain economic momentum and achieve substantial milestones in credit growth for the MSME sector.
