Credit growth of around 25 per cent is required, FIEO

To sustain the growth-rate target of 8-9 per cent, a credit growth of around 25 per cent is required, said A Sakthivel, President, Federation of Indian Export Organisations (FIEO) while commenting on the 7.2 per cent growth estimated during 2009-2010 vis-à-vis the actual 6.7 per cent.

The present credit growth as per RBI data is less than 13.9 per cent and the revised target for this fiscal year set by the apex bank is 18 per cent, which is far from the need for the target growth.

Sakthivel explained that the MSME export sector would need tax breaks on investments in plant and machinery, R&D and income tax because of the effects of the economic crisis like higher government borrowing, lesser consumption and unemployment in the developed economies due to the economic crisis.