Trend and pattern on institutional credit to agriculture in India

Maheswari T

MPRA Paper from University Library of Munich, Germany

Abstract: Agriculture plays a crucial role in the development of the Indian. It accounts for about 19 percent of GDP and about two-thirds of the population is dependent on the sector. The importance of farm credit as a critical input to agriculture is reinforced by the unique role of Indian agriculture in the macroeconomic framework and its role in poverty alleviation Recognizing the important of agriculture sector in India’s development, the Government and the Reserve Bank India (RBI) have played a vital role in creating a broad-based institutional framework for catering to the increasing credit requirement of the sector. To overcome the defects of unorganized sector in the rural credit, NABARD was established 1982 and various reforms were also initiated. Though there is a full-fledged structure of rural credit in India, unorganized sector has major share in the rural credit. Due to dominance of unorganized sector in rural credit, Indian farmers faced lot of problems. Farmer’s suicide is the burning issue in India. Unorganised rural credit sector is one of the cause for farmer suicide in India. GOI announced the interest subvention scheme in the year 2006 -07 in order to provide incentives to the farmer for their prompt repayment of loan. In this backdrop, this study made an attempt to examine the growth and pattern of institutional credit to agriculture in India from 2006-07 to 2021-22.

Keywords: Institutional Credit; Agriculture; India; Rural Credit; Agricultural Finance (search for similar items in EconPapers)
JEL-codes: A1 Q1 Q14 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/123274/1/MPRA_paper_123274.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:123274

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().