Eyeing a Credit Deposit (CD) ratio of 65 percent in the current financial year 2024-25, the Uttar Pradesh government is looking to improve credit flow in the state’s economy.
Currently, UP’s CD ratio of 60 percent is much below the national CD ratio of nearly 80 percent.
UP chief minister Yogi Adityanath said the state has made remarkable development over the past seven and half years, and the government is now targetting to improve the CD ratio.
“The state’s CD ratio, which was only 44 percent before 2017, has risen to 60 percent, with a goal to reach 65 percent,” he said earlier this month while addressing an employment and loan fair in Moradabad district.
The state has been nudging banks to adopt a liberal approach in granting loans to industry, while promising to support the financial institutions.
The CD ratio refers to the money deployed by the banks as loans vis-à-vis funds raised. A high CD ratio indicates liquidity and easy availability of funds for industry.
In India, Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Gujarat and Karnataka are the leading states in terms of CD ratio.
Moreover, the priority sector credit flow in UP is estimated to jump almost 52 percent from about Rs 3.75 trillion in 2023-24 to Rs 5.73 trillion in the financial year 2024-25.
To realise its $trillion economy goal by 2027, UP is catalysing the agricultural, Micro, Small and Medium Enterprises (MSME), manufacturing and services sectors.
Meanwhile, Yogi claimed Moradabad is emerging as a growth engine due to its handicrafts and skilled craftsmanship, which resulted in exports worth almost Rs 20,000 crore from the region.
The MSME sector contributes 60 percent to UP’s industrial output. While the MSME exports are currently to the tune of over Rs 1.5 trillion, the state is targetting to double shipments to Rs 3 trillion in the next 2-3 years.
Moradabad district is famous for brassware, art metal ware, art jewellery and bone jewellery.
Other regions in UP known for art jewellery, gems, jewellery and gold jewellery include NOIDA Export Processing Zone (NEPZ), Meerut, Agra etc.