The Planning Commission on Monday said low credit offtake will not affect the economic growth as the industry was raising funds from other sources such as external borrowings and stock market.
"I agree that the credit offtake is not good...(but) there are positive signs (which are) are essentially consistent. What we have said, this is the period when it (economic recovery) will begin," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters when asked whether low credit offtake was a matter of concern.
Elaborating on Ahluwalia's view, Planning Commission member Saumitra Chaudhuri said, "It is true that there is low credit offtake (but) some companies have raised money from non-bank sources.
"The companies raised money from various other non-bank sources like the private corporate bond market, from equity issuances, from overseas lending", he explained.
The non-food credit, according to the RBI data, slipped to Rs 1.01 lakh crore during the first half of the current fiscal as compared to Rs 1.88 lakh crore during the corresponding period last fiscal.
Chaudhuri further said, "Corporate bond market opened in December, 2008. Equity market and external commercial borrowing market opened in June/July. Thus in last three to four months companies raised a lot of money."