Guru Nanak Journal of Multi-Disciplinary Research (GNJMDR), Volume 14, Issue 1, January – June 2025
(Refereed, Peer-Reviewed and Bi-annual Journal)
ISSN: 2277-1409
3. To evaluate the role of financial institutions necessary funds for investments and
for institutional credit in agriculture modernization, leading to increased productivity
development. and output. The present study analyses the
Methodology institutional credit for agriculture and allied
The present study completely relies on activities in India covering the period between
secondary sources of data available in the report 2011-12 and 2022-23. Table 1 shows the
of the Handbook of Statistics on Indian composition of institutional credit loans issued
Economy, Reserve Bank of India (RBI). In order for agriculture and allied activities. Within the
to study the growth and performance of loan issued by the total institutional credit,
institutional credit for agriculture and allied scheduled commercial banks (SCBs) constituted
activities in India, statistical tools such as a major component, constituting, on average,
averages, ratios and growth rates were widely 73.2 per cent during the period covered under
used. study, and the remaining 15 per cent and 11.8
Institutional Credit and Agriculture per cent were constituted by cooperatives and
Development regional rural banks (Figure 1). Amongst total
Agricultural activities have been divided into institutional credit, the SCBs remained the
two broad heads, viz., crop production and allied largest component in the loan issued by
activities. The allied activities cover livestock, institutional credit, which increased from 64.6
forestry, fisheries, etc. Institutional credit plays a per cent in 2010-11 to 76.9 per cent in 2022-23.
crucial role in driving agricultural development
by providing farmers with the
Table 1: Components of Loan Issued in the Institutional Credit (Rs. Crore)
Year Co-operatives SCBs RRBs Total
2010-11 78121 (22.7) 222792 (64.6) 43965 (12.7) 344878 (100)
2011-12 87963 (19.3) 312877 (68.7) 54450 (12.0) 455290 (100)
2012-13 111203 (16.9) 484499 (73.5) 63681 (9.7) 659383 (100)
2013-14 119964 (16.4) 527506 (72.2) 82653 (11.3) 730123 (100)
2014-15 138470 (16.4) 604376 (71.5) 102483 (71.5) 845329 (100)
2015-16 153295 (16.7) 642954 (70.2) 119261 (13.0) 915510 (100)
2016-17 142758 (13.4) 799781 (75.0) 123216 (11.6) 1065755 (100)
2017-18 150321 (12.9) 871080 (74.9) 141216 (12.1) 1162617 (100)
2018-19 152340 (12.1) 954823 (76.0) 149667 (11.9) 1256830 (100)
2019-20 157367 (11.3) 1070036 (76.8) 165326 (11.9) 1392729 (100)
2020-21 190682 (12.1) 1194704 (75.8) 190012 (12.1) 1575398 (100)
2021-22 243220 (13.1) 1415964 (76.0) 204180 (11.0) 1863364 (100)
2022-23 243824 (11.3) 1663942 (76.9) 257078 (11.9) 2164844 (100)
Annual (15.0) (73.2) (11.8) (100)
Average
Source: Reserve Bank of India (RBI): Handbook of Statistics on the Indian Economy.
A Study on Institutional Credit for Agriculture and Allied Activities in India
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