Credit flow to agriculture and smalland medium-industry appears to be constrained causing concerns. There are significant structural and procedural bottlenecks in the existing institutional set up for credit delivery. The pace of reforms in real sector, particularly in property rights and agriculture also impinge on the flow of credit in a deregulated  6  BIS Review 3/2002  environment.
The persistence of fiscal deficit, with the combined deficit of the Central and State Governments continuing to be high, draws attention to the delicate internal and external balance.