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Note ban slowed MSME credit, sector's exports dampened by GST: Study

Latest RBI data show credit to micro and small enterprises in June decelerated by 2.4% from March 2018

An auto component manufacturing unit in Ludhiana. Photo: Reuters
An auto component manufacturing unit in Ludhiana. Photo: Reuters

Credit to micro, small and medium enterprises (MSMEs) sector is showing healthy signs of recovery from the impact of demonetisation and goods and services tax (GST), says a study on the Reserve Bank of India (RBI) website. MSME credit saw healthy growth in recent quarters and has recovered since the lows of late 2017 to reach the mid-2015 level, it said.  However, the latest RBI data shows credit to micro and small enterprises in June decelerated by 2.4 per cent from March 2018. MSME credit saw a year-on-year (y-o-y) growth of 0.7 per cent in June 2018 against June 2017. ...