Credit flow will improve: MoF

NEW DELHI, April 29: The Union finance ministry views the credit policy ushering an industrial recovery in the current fiscal. Speaking to The Indian Express, Shankar Acharya, chief economic adviser in the Ministry of Finance said credit availability will improve further as a result of the measures announced. Lower interest rates should get industry out of the recessive phase, Acharya added.

Indications of a recovery are already evident as non-food credit by banks and quantum of sanctions and disbursements by financial institutions has witnessed a substantial jump, he added. The ministry supports the RBI’s point of view that for a sustained growth of output in the economy, capital expenditure by the government should be increased.