Impact of Direct Institutional Credit on Agricultural Productivity in India: An Empirical Analysis

By : Kappa Kondal

Page No: 82-96

Abstract
Government provides certain direct and indirect facilities to boost the agriculture sector through different financial institutions. Credit helps the farming community to purchase modern machines, tub wells, seeds, fertiliser, pesticides and other inputs. The aim of the present study is to analyse the trends and impact of direct institutional credit on agricultural productivity in India. Secondary data have been used (1980–81 to 2017–18). Descriptive statistics and multiple natural log linear regression models have been employed. The study reveals that there was a positive growth in flow of institutional credit to agriculture sector. After new economic reforms, there was a significant progress of SCBs credit to agriculture sector compared to Cooperative Banks, RRBs. The main finding is that all the independent variables (area, credit, fertiliser and new economic reforms) are affecting positively and significantly on agriculture productivity in India.

Author :
Kappa Kondal : UGC-Post Doctoral Fellow, Dept. of Economics, Osmania University, Telangana State, India
 

DOI: https://doi.org/10.32381/PROD.2020.61.01.9