What is it about?
This article delves into the intricate relationship between credit and agricultural productivity in India. It highlights the pivotal role of institutional finance, particularly in catalyzing the Green Revolution. The study, employing a multi-linear regression model, underscores the strong correlation between credit and agricultural output, alongside the impact of other inputs like fertilizers, pesticides, and machinery. While acknowledging the positive influence of government interventions, the passage also addresses the pressing challenges posed by climate change and policy implementation gaps. It emphasizes the urgent need for sustainable agricultural practices to ensure food security and rural development in India.
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Why is it important?
Credit, particularly from institutional sources, has been a major catalyst for agricultural growth in India. This was evident during the Green Revolution, where institutional financing played a crucial role in boosting productivity. The study highlights a strong correlation between credit access and agricultural output, suggesting that increased credit leads to higher productivity. Additionally, factors like fertilizers, pesticides, machinery, electricity, and government interventions, such as subsidies and infrastructure development, contribute significantly to agricultural growth.
Perspectives
Indian agriculture, a backbone of the economy, has historically relied on credit, especially from institutional sources, to fuel its growth. This was particularly evident during the Green Revolution, where institutional finance significantly boosted productivity. The study reinforces this connection, highlighting a strong correlation between credit access and agricultural output. Beyond credit, factors like fertilizers, pesticides, machinery, electricity, and government interventions, such as subsidies and infrastructure development, contribute to agricultural growth. However, challenges like climate change and policy implementation gaps persist. To ensure sustainable agricultural growth and food security, India must prioritize climate-resilient practices and effective policy implementation.
Dr Mahesh Ramaswamy
D V S Evening Collage Shimoga Karnataka
Read the Original
This page is a summary of: Impact of Agricultural Credit by Commercial Banks on Agricultural GDP, SDMIMD Journal of Management, November 2024, Informatics Publishing Limited,
DOI: 10.18311/sdmimd/2024/46225.
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