Performance of the Agricultural Sector in India Through Farm Credit Accessibility: A Statistical Analysis

Agriculture and its allied economic activities are rural India’s largest employment-generating instrument. It is contributing a sizeable amount to the Gross Domestic Product (GDP) as well. The nation’s agricultural sector and other related activities witnessed revolutionary growth. The major aim of this paper is to find out the role of agricultural credit in agricultural output, analyse the credit disbursement by tanking institutions to small and medium farmers and evaluate the farm credit accessibility and performance of agriculture in terms of production in India. The biggest concern in the agricultural sector is the non-availability and inadequacy of formal credit facilities for farming activities. The growth of the farm sector is purely based on the increased production of agricultural commodities. It can be possible through financial support through formal credit systems. The farm credit encourages the agrarians to shift to a superior production level by using additional inputs and achieving a higher output level. It will also help to promote employment in rural areas. This work basically followed the descriptive and analytical structure of the research method to emphasise the role of agricultural credit in enhancing the performance of the sector. This piece of research study used secondary data sourced from various published government reports such as the Press Information Bureau of India, NABRD, and RBI reports published in various years. The information is collected from the recent past years from 2017–2018 to 2020–2021 period. The soured data was tabulated and inferred to emphasise the significance of farm credit in enhancing the performance of the agricultural sector in India. Based on this background, this paper aims to emphasise the role of credit accessibility of farmers in improving agricultural performance in terms of output. It is found from the analysis that agricultural credit accessibility and disbursement were supported to promote the production of small and medium farmers in India.