Revolution in agricultural finance in India: A conceptual framework

Purpose: For many developing Countries, agriculture sector plays an important role in their economy. In India it contributes 21 percent in GDP and near about 2/3^rd of the population is dependent on it. As numerous cash transactions are carried out throughout the farm’s agricultural value chain. In this paper we approach to change cash payments to digital payments in Agriculture Sector.

Research Gap: In modern scenario, Digital Finance and technology take major place instead of traditional mode of finance in every sector of economy. So there is need of revolution in agriculture sector with adopting Digital Finance and technology.

Design/methodology: This paper structurally reviews existing contributions and synthesis these into conceptual framework of Digital Finance in Agricultural Sector.

Findings: Reaching rural agricultural population and communities is challenging but Agricultural developers are well positioned to take advantage of digital finance on behalf of the pyramid’s agricultural base. So, Digital Finance provides opportunity to stakeholders of agriculture sector to access high value markets and technology, and reduce cost of doing business.

Research Limitation: Drawing on our literature survey, we conclude with a conceptual framework describing the factors that affect the Digital Finance. Further research could use this framework to develop guidelines for real life applications. There are so many variables that influence our study i.e. technical literacy, service providers, digital security, cyber laws etc.

Practical Implication: It is recommended that financial service providers design brand appeals and advertising message that are targeted at farmer’s functional agricultural needs. Furthermore, financial service providers can maximize superior brand experience through a successful integrated strategy of meeting agricultural functional needs in an outcome driven approach and exceeding farmer’s expectation within a process-driven Digital Payments service experience.

Originality/ Values: This paper aims to advance the literature on Digital Finance from the level of individual involved in agriculture sector to a conceptual level and provides direction to how to revolutionize it through Digital Finance System. This paper broadens understanding and insight into the complex and evolving area of Digital Finance Management within agricultural financial services and has far- reaching theoretical and practical implications.

Paper Type: Theoretical Paper