Role and Trend of Agricultural Finance Institutions in the Inclusive Growth of Farmers in Rural India

Ujwala Kambali,Niyaz Niyaz

doi:10.47992/ijcsbe.2581.6942.0144

Abstract

Purpose: The study is to evaluate the development of agricultural credit in India, exploration of the agricultural development and also to examine the various policies implemented by the Government of India. The paper emphasizes on the development in agriculture finances, new methods, techniques and technologies with a focus on how they lead to improved agricultural growth and greater financial inclusion. Design/Methodology/Approach: The study is grounded on secondary data compiled from different journals, web sites and related information from newspapers, annual reports of NABARD and RBI. Findings: The study has discovered that, informal credit has decreased as a percentage of total debt, while institutional credit to agriculture has exaggerated over time as a result of institutional agencies volunteering into rural areas, nationalization of foremost commercial banks and the establishment of regional rural banks through Reserve Bank of India initiatives. Originality/Value: This study is unusual in that it attempts to trace the agricultural financial institution in India, as well as the numerous agricultural policies that have been enacted as a result of agricultural finance. Paper Type: Case Study

Highlights

The agriculture sector is an important contributor to the prosperity of a nation
One big concern with this source information is the financial pitfall that farm owners get through after borrowing funds from them [8]
Tenants, and others increase the interest rate to farm owners, and since they are motivated by profit, they ignore challenges such as irregular monsoon and other dimensions that reduce agricultural output [7][8]

Summary

Introduction

The agriculture sector is an important contributor to the prosperity of a nation It plays a pivotal role in Indian society’s economic life. Agriculture is responsible for one-third of India’s national wealth and sector accounted for 60% of all exports, whether directly or indirectly [1]. Tenants, and others increase the interest rate to farm owners, and since they are motivated by profit, they ignore challenges such as irregular monsoon and other dimensions that reduce agricultural output [7][8].

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Conclusion