Rajnath asks banks to address liquidity crunch

Home Minister Rajnath Singh Friday said that there should be no liquidity shortage for businesses in the country while asking banks to continue lending to borrowers.

Addressing the audience at the Trade Facilitation Centre here, he noted that the government was providing loans to the MSME sector at lower interest rate.

The MSME sector is the backbone of the economy, contributing over 29 per cent share in the GDP and also generating the highest employment in the country, he said.

The Narendra Modi-led government's focus is to further strengthen the MSME sector, and enabling entrepreneurs to avail loans up to 1 crore through its newly launched portal in just 59 minutes.

He exuded confidence that the size of Indian economy will grow two-folds in the next 5-10 years from the current USD 2.5 trillion and even become larger than the UK's.

Recalling the 1991-92 economic reforms, Singh said if it was known as an era of economic reforms then the present Narendra Modi government will be remembered for its "structural and procedural reforms".

He even said the Union government was even further ready to make changes in the GST on the suggestion of traders and businessmen, adding they do not hold a "rigid attitude" and are always ready to work with reformative approach.