Similarly, special treatment has to be accorded to small-sector units in improving their accessibility to institutional finance with a view to enabling them to emerge as profit centres for the banking system.
Given its critical importance in the manufacturing and export activities in the economy, it is unlikely that the banking system’s profitability and efficiency can grow without exploiting the opportunity provided by the small-scale industrial sector. The Kapur Committee has recently made a comprehensive set of recommendations for improving the credit delivery system for small-scale industries, which are being implemented in phases.