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An Analysis of Institutional Credit, Agricultural Policy and Investment to Agriculture in India

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  • saravanan, saravanan

Abstract

Credit is an essential factor to determine the production and productivity in agriculture. For providing credit in India both Institutional sectors (Cooperative Banks, Commercial Banks and Regional Rural Banks) and non- Institutional sectors like money lenders, traders, landlords and relatives play significant. In order to increase the flow of credit the government of India introduced agriculture policy in 2004 to multiple credit to the farmers. At the same time, the role of both private and public sectors also contributes for agriculture in India. The cob-douglas production was used to determine the impact of institutional credit to agriculture GDP. In the cobb- douglas production function with agricultural GDP as dependent variable and institutional credit, net irrigated area, consumption of pesticide and consumption of fertilizer are independent variables. It was found that both institutional credit and net irrigated area had significant variables and other two variables are not significant.

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  • saravanan, saravanan, 2016. "An Analysis of Institutional Credit, Agricultural Policy and Investment to Agriculture in India," MPRA Paper 72891, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:72891
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    References listed on IDEAS

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    1. Pradhan, Narayan, 2013. "Persistence of Informal Credit in Rural India: Evidence from ‘All-India Debt and Investment Survey’ and Beyond," MPRA Paper 80381, University Library of Munich, Germany.
    2. Izhar, Ahmad & Tariq, Masood, 2009. "Impact of Institutional Credit on Aggregate Agricultural Production in India during Post Reform Period," MPRA Paper 17075, University Library of Munich, Germany.
    3. Kumar, Anjani & Singh, K.M. & Sinha, Shradhajali, 2010. "Institutional Credit to Agriculture Sector in India: Status, Performance and Determinants," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(2), July.
    4. Kannan, Elumalai, 2011. "Relationship Between Agricultural Credit Policy, Credit Disbursements and Crop Productivity: A Study in Karnataka," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 66(3), pages 1-13.
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    Cited by:

    1. Jun, Cai & Shan, Liang, 2023. "Financial deepening and the development of industrial integration in poverty-eliminated counties," Finance Research Letters, Elsevier, vol. 58(PB).

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    More about this item

    Keywords

    Institutions; Credit; Policy; Investment;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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