Financing Small Industries

With the Shroff Committee's report on short-term finance for the private sector due soon, there is speculation among small and medium industries regarding their status in the recommendations. Banks have shown some inclination to modify their orthodox policy towards industrial banking, but with many conditions. It is accepted that checking unemployment largely hinges on the assistance these industries receive, as they have the largest scope for providing fresh employment. While the overall economy shows encouraging features, new industries have been few, and many smaller units have closed down due to lack of finance. Mr. S. G. Sathe is afraid new high-denomination notes may bring several evils, including internal unsocial activity and easy escape out of India to smuggle scarce and banned commodities