Effectiveness of Government Spending on Agriculture: A Study on Impact of Subsidy & Access to Agri-Credit on Agricultural GVA in India

Rashmi and Anusha
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Rashmi: Student, Department of M.Com, M.Com Previous, SKVMS Govt First Grade College and Centre for PG Studies Kundapura, Koteshwara
Anusha: Student, Department of M.Com, M.Com Previous, SKVMS Govt First Grade College and Centre for PG Studies Kundapura, Koteshwara

International Journal of Research and Scientific Innovation, 2025, vol. 12, issue 7, 540-545

Abstract: This study explores the impact of spending on agricultural productivity in India. It analyzes the link between budget allocations, agrarian credits, and subsidies in evaluating sustainable farming growth. By analyzing secondary data from the past 20 years using quantitative analysis, the research discovers that although government budget allocation and subsidies on agriculture have increased significantly, their direct impact on agricultural development is insignificant. However, access to agricultural credit plays a vital role in agricultural productivity, showing a strong positive correlation with Gross Value Added (GVA). The findings suggest optimizing credit flow rather than increasing budgetary allocations and subsidies. This study contributes to policy discussions on government financial strategies for long-term agricultural development.

Date: 2025
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