Government sharpens focus on development of rural infrastructure
Data compiled by Nabard show the share of long-term credit or loans of more than one-year tenure in total agricultural credit, which aids capital formation, has been constantly declining
New Delhi: Finance minister Arun Jaitley on Thursday stressed the need for capital formation in agriculture and development of rural infrastructure for improving the quality of living of people in rural India.
Data compiled by the National Bank for Agriculture and Rural Development (Nabard) show the share of long-term credit or loans of more than one-year tenure in total agricultural credit, which aids capital formation, has been constantly declining.
This has been more stark in the last few years because the government’s interest subsidy scheme has made short-term crop loans more attractive.
It also shows that India still has a long way to go to ensure that banking services reach India’s rural population.
This is one of the reasons why the government has announced a host of measures to increase capital formation in agriculture.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!