The West Bengal government on Friday expressed optimism about surpassing its Rs 1.53 lakh crore credit target for the Micro, Small, and Medium Enterprises (MSMEs) sector in the state for the 2024-25 fiscal.

Achieving this milestone would reflect a 7.7 per cent credit growth for the sector over the previous fiscal year. The credit flow to MSMEs stood at Rs 1.42 lakh crore in the previous fiscal.

"Already, in the first two quarters, around 77 per cent of the target has been achieved," said Amit Mitra, principal chief advisor to Chief Minister Mamata Banerjee and the state’s finance department.

Mitra noted that credit flow to Self-Help Groups (SHGs) has been steadily rising, with a target of Rs 30,000 crore set for FY'25, compared to Rs 25,000 crore achieved in the year-earlier period.

Highlighting the state's 12.14 lakh SHGs, he emphasised the role of human capital in driving demand creation and economic growth while speaking at a summit organised by the Bengal Chamber of Commerce and Industry and the Rising Asia Foundation.

He also pointed out that despite a reduction in corporate taxes at the national level, private sector investments failed to gather the expected momentum.

"Bengal has adopted a bottom-up policy, which differs from the Centre's approach," Mitra said, adding, the state’s unemployment rate remains lower than the national average despite following its distinct economic policies.

Mitra also underscored the significant increase in the state’s capital expenditure, which rose from Rs 2,226 crore in 2010-11 to a budgeted Rs 35,865.55 crore in 2024-25.

He said states in eastern India, particularly Bengal, are poised to grow at a faster rate due to their policy initiatives. Mitra added that southern and western states currently contribute around 31 per cent and 22 per cent to the GDP at current prices, respectively, but eastern states are catching up.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.