IDEAS home Printed from https://ideas.repec.org/a/ags/ajaees/366939.html
   My bibliography  Save this article

An Economic Analysis of Agricultural Credit-led Agricultural Growth in India

Author

Listed:
  • Parthiban, J. J.
  • Anjugam, M.

Abstract

Among all sectors, the agriculture sector will be the pillar stone for sustainable economic growth. Agriculture credit shows the pivotal role for efficient agricultural transactions. The study investigates the role of agriculture credit in India’s agricultural credit through various economic analyses. The data was collected from various government websites such as RBI, Ministry of Statistics and Programme Implementation of India, Economic Survey of India. The results observed that institutional credit has a positive correlation with fertilizers consumed whereas consumption had a negative correlation with agricultural produces. The results further stated the co-integration and the Johansen-Juselius maximum likelihood tests the long-run positive association between India’s agricultural GDP and agricultural credit and increased Agricultural GDP drives agricultural credit. Finally, the policy implication on two perspectives as to encourage institutional credit arrangement to reach farmers with easy operational facilities across the nation and non-institutional credit need to marginalize the informal sources.

Suggested Citation

  • Parthiban, J. J. & Anjugam, M., 2022. "An Economic Analysis of Agricultural Credit-led Agricultural Growth in India," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 40(5), pages 1-11.
    • Handle: RePEc:ags:ajaees:366939
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/366939/files/sciencedomain%2C%2BParthiban4052022AJAEES84570.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fengxia Dong, 2013. "Effects of credit constraints on household productivity in rural China," Agricultural Finance Review, Emerald Group Publishing, vol. 72(3), pages 402-415, January.
    2. Sudha Narayanan, 2016. "The productivity of agricultural credit in India," Agricultural Economics, International Association of Agricultural Economists, vol. 47(4), pages 399-409, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Unal Seven & Semih Tumen, 2020. "Agricultural Credits And Agricultural Productivity: Cross-Country Evidence," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(supp01), pages 161-183, December.
    2. Md. Toaha & Laboni Mondal, 2023. "Agriculture Credit and Economic Growth in Bangladesh: A Time Series Analysis," Papers 2309.04118, arXiv.org.
    3. Bhanot, Disha & Farias, Vivek & Sinha, Deeksha, 2025. "Interest subvention for crop loans in India: Win-win or win-lose ?," Journal of Policy Modeling, Elsevier, vol. 47(2), pages 371-393.
    4. Abdulsalam, Rakiya Yakubu & Shamsudin, Mad Nasir & Wong, Kelly Kai Seng & Buda, Mark, . "Impact of Credit Policy On Paddy Area in Nigeria," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(2).
    5. Anubhav Agarwal & Shubhangi Kumar, 2020. "Interest rate subvention in Indian agriculture: A demand-side analysis and proposed alternatives," ASARC Working Papers 2020-02, The Australian National University, Australia South Asia Research Centre.
    6. Narayan Prasad Nagendra & Gopalakrishnan Narayanamurthy & Roger Moser, 2022. "Satellite big data analytics for ethical decision making in farmer’s insurance claim settlement: minimization of type-I and type-II errors," Annals of Operations Research, Springer, vol. 315(2), pages 1061-1082, August.
    7. repec:ags:icar24:344992 is not listed on IDEAS
    8. Paramasivam Ramasamy & Umanath Malaiarasan, 2023. "Agricultural credit in India: determinants and effects," Indian Economic Review, Springer, vol. 58(1), pages 169-195, June.
    9. Cariappa, A. G. Adeeth & Sendhil, R, 2021. "Does Institutional Credit Induce on-Farm Investments? Evidence from India," 2021 Conference, August 17-31, 2021, Virtual 315221, International Association of Agricultural Economists.
    10. Narayanamurthy, Gopalakrishnan & Jayanth, R Sai Shiva & Moser, Roger & Schaefers, Tobias & Nagendra, Narayan Prasad, 2025. "Data-driven digital transformation for uncertainty reduction – Application of satellite imagery analytics in institutional crop credit management," International Journal of Production Economics, Elsevier, vol. 280(C).
    11. Abdul Rehman & Zakia Batool & Hengyun Ma & Rafael Alvarado & Judit Oláh, 2024. "Climate change and food security in South Asia: the importance of renewable energy and agricultural credit," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    12. Daniel Henrique Nascimento & Carlos Enrique Carrasco‐Gutierrez & Mathias Schneid Tessmann, 2023. "Rural credit and agricultural production: Empirical evidence from Brazil," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4236-4245, October.
    13. Rishabh Sinha, 2022. "Crop yield convergence across districts in India’s poorest state," Journal of Productivity Analysis, Springer, vol. 57(1), pages 41-59, February.
    14. Hamdiyah Alhassan & Benjamin Musah Abu & Paul Kwame Nkegbe, 2020. "Access to Credit, Farm Productivity and Market Participation in Ghana: A Conditional Mixed Process Approach," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(2), pages 226-246, May.
    15. Gagan Deep Sharma & Muhammad Ibrahim Shah & Ritika Chopra & Amar Rao & Umer Shahzad, 2025. "Impact of technological advancement and greener energy on sustainable agriculture in Asia: Evidence from selected Asian countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 221-237, February.
    16. Oluyemi Adewole Okunlola & Yacouba Kassouri, 2023. "Empirical investigation of the agriculture–malnutrition nexus in Africa: Spatial clustering and spillover effects," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 685-709, May.
    17. Hu, Lifang & Lopez, Rigoberto A. & Zeng, Yinchu, 2020. "Determinants of credit constraints for agricultural wholesalers in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(4), June.
    18. Ramprasad, Vijay, 2021. "Institutional benefit pathways in development," World Development, Elsevier, vol. 142(C).
    19. Amr Khafagy & Mauro Vigani, 2023. "External finance and agricultural productivity growth," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 448-472, March.
    20. Nyarai M. Mujuru & Ajuruchukwu Obi, 2020. "Effects of Cultivated Area on Smallholder Farm Profits and Food Security in Rural Communities of the Eastern Cape Province of South Africa," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    21. Jisha, K K & Palakkeel, Prashobhan, 2023. "Availability of agricultural credit: determinants, marginal effect, and predicted probability," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), December.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajaees:366939. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://journalajaees.com/index.php/AJAEES/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.