Government Says Credit Offtake Moderation Due To Pandemic Is A Challenge

Moderation in credit offtake in the country since the outbreak of the Coronavirus pandemic, due to lack of private investment demand, is an area of concern for the government.

Secretary in the Economic Affairs department of the Finance Ministry, Ajay Seth said on Monday while addressing an industry body event that among the challenges being faced by the government is that credit offtake has moderated in the last 18 months because of the onset of the pandemic.

Due to lack of private investment demand, the credit offtake demand has been quite moderate, he said, adding that it was an area where “further work is needed”.

At the same time though, Mr Seth said that despite the negative impact of the pandemic, the country has been on the path of economic recovery, helped mainly by several reforms launched by the central government in the last seven years.

He added that even during the lockdown period and when the pandemic was at its peak, many significant reforms were unveiled by the government, which helped the economy to recover.

"During the pandemic period of the past 18 months, it was not just the management of the impact of the pandemic, starting from a health crisis spilling over to the real economy and thereafter some impact onto the financial sector. Managing each of those, but with very strong emphasis on stepping up the reforms, so that the economy can bounce back with a fast growth rate, and also the potential growth rate can be built," he said.