1Associate Professor, Indian Institute for Production Management (IIPM), Kansbahal, India
2Dean, School of Commerce & COE, Ravenshaw University, Cuttack, Odisha, India
Online published on 12 March, 2021.
Development of Agriculture and allied activities sector is a pre-requisite for economic development of developing countries like India as the sector contributes a significant share in GDP, provides livelihood to a large number of people and produce raw material for industrial sector. Insufficient credit has been a major problem for farmers and others engaged in agricultural and allied economic activities. This paper examines the trends, growth and share of participating institutions viz. Co-operative Bank, SCB and RRB in Direct Institutional Credit for Agriculture and Allied Activities (DICAAA) in India during 2000-01 to 2009-10. It has been found that DICAAA has increased at an annual CAGR of 24.3%, 22.9% and 23.9% for loan issued in short, long and short & long terms respectively while loan outstanding has increased at an annual CAGR of 23.6%, 14.8% and 19.1% for the same terms respectively. Although loan issued has increased but still they are not sufficient and Govt. should enlarge the channel of institutional credit agencies especially in rural areas.
JEL Classification: Q1, Q140
DICAAA, loan issued, loan outstanding, CAGR and India
