Government Says Credit Offtake Moderation Due To Pandemic Is A Challenge

Economic Affairs Secretary Ajay Seth said that among the challenges being faced by the government is moderation in credit offtake in last 18 months

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.