The Economic survey has brought out its results on credit growth in India this year. Retail loans have secured the bottom-line by showing a credit growth of only 0.7% as of 20th November 2009 as compared to 13.2% in the previous year.

Since growth in the retail sector has been very bleak, so the Survey has emphasized on the necessity to monitor these credit growth parameters while designing measures to withdraw the fiscal stimulus.

Although growth has remained more or less stable for the agricultural sector, but it has declined for the other major sectors of the country by the names- industry, personal loans and services.

But amongst all the sectors, retail loans have fared the worst. Certain sub categories like advances against fixed deposits, credit card outstandings and consumer durables have shown a decline sharply.

"It would be necessary to monitor these indicators for an improvement in credit growth, while sequencing measures to roll back the stimulus," the Survey said.

Although demand for non food credit has remained numb, there has been a considerable increase in availability of non bank resources.

"This increase in flow of funds from non-banking sources was both from domestic and foreign sources, and is indicative of structural rigidities that affect the monetary transmission mechanism, particularly in respect of the credit markets," the Survey said.

The Survey also pointed out that the growth in aggregate deposits has remained higher than that in bank credit during 2009-10.