The Finance Ministry and the Reserve Bank will issue directions to the banks to step up credit for micro, small and medium enterprises.
A task force formed by Prime Minister Manmohan Singh on Thursday discussed steps to enhance credit to MSMEs, which contribute 45 per cent to the country's industrial production.
"The Finance Ministry and the RBI will soon issue instructions to banks to ease the credit to the industry," the Secretary in the MSME ministry, Dinesh Rai, said.
The meeting of the group, headed by Prime Minister's Principal SecretaryT K A Nair, also considered ways to infuse venture and equity capital into these units.
TheMSMEs, which bore the brunt of the economic slowdown have been seeking concessional credit as also equity infusion.
The sector, which employs 4.2 crore people and accounts 40per cent of India's exports, has been suffering sickness due to reasons such as shortage of working capital and technology obsolescence.
The task force, constituted in August, also comprises Finance Secretary Ashok Chawla and Labour Secretary P C Chaturvedi, had formed several expert sub-groupsto look into the specific problems faced by the sector.
Thegroup also discussed reports on credit and revival of sick units.