Agricultural credit and Allied Activities in India: Trends, Growth and Share of Participating Institutions

Kirti Swain


Development of Agriculture and allied activities sector is a pre-requisite for economic development of developing countries like India as the sector contributes a significant share in GDP provides livelihood to a large number of people and produce raw material for industrial sector. Insufficient credit has been a major problem for farmers and others engaged in agricultural and allied economic activities. This paper examines the trends, growth and share of participating institutions viz. Co-operative Bank, SCB and RRB in Direct Institutional Credit for Agriculture and Allied Activities (DICAAA) in India during 2000-01 to 2009-10. It has been found that DICAAA has increased at an annual CAGR of 24.3%, 22.9% and 23.9% for loan issued in short, long and short & long terms respectively while loan outstanding has increased at an annual CAGR of 23.6%, 14.8% and 19.1% for the same terms respectively. Although loan issued has increased but still they are not sufficient and Govt. should enlarge the channel of institutional credit agencies especially in rural areas.



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ISSN : 2251-1555