ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Foreign Policy- After the Restoration

 fact, despite this emphasis, the distortion by and large continues, if we consider expansion of bank credit to medium and large scale industries in relation to growth of their output. For instance, industrial output increased by 3.3 per cent in 1977-78, whereas bank credit to medium and large industries expanded by 13.2 per cent. In 1978-79, when industrial output expanded by 7.6 per cent, bank credit to the medium and large industrial sector surged ahead by 14.1 per cent. Even in the first nine months of 1979-80 when industrial output is said to have registered an absolute decline, bank credit to medium and large industries expanded by 7.8 per cent. Of course. exact correspondence of credit expansion and growth of output in each period is not to be expected, but the fact is that there is a continuing and growing backlog of excess credit drawals by the medium and large industrial units and the Economic Survey fails to take this into account.

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