• Dr. Mohan Sahni Teacher, +2High School, Pindaruch, P.S.- Kamtaul, Dist. Darbhanga -847306, Bihar


Agriculture, livelihood, population, challenges and credit


Agriculture plays a significant role in the Indian economy and provides employment and livelihood to a large section of the Indian population. Approximately 44% (as per ILO estimate of 2018) of the working population is employed in agriculture and allied sector. However, the contribution of agriculture to GDP has been declining from 52% in the 1950s to 30% in the 1990s and further below 20% from 2010 onwards as per data from Ministry of Statistics and Programme Implementation (MoSPI). In 2018-19, the share of Agriculture & Allied Gross Value Added (GVA) in overall GVA was 16% (Ministry of Agriculture and Farmers' Welfare (MoA&FW) Annual Report 2018-19). Economic Survey 2018-19 suggests that the growth rate in GVA (at 2011-12 prices) over past five-six years has been higher for livestocks, fishing and aquaculture as compared to crops. Allied activities contribute approximately 40% to agricultural output, whereas only 6-7% of agricultural credit flows towards allied activities. Despite these initiatives, there are several challenges confronting Indian agriculture such as diminishing and degrading natural resources, rapidly growing demand for food (not just for quantity but also for quality), stagnating farm incomes, fragmented land holdings and unprecedented climate change, which need to be tackled for long term sustainability and viability of Indian agriculture.


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II. Das, A., Senapati, M., & John, J. (2009). Impact of agricultural credit on agriculture production: An empirical analysis in India. Reserve Bank of India Occasional Papers, 30(2), pp.75-107.

III. Pradhan, N. C. (2013). Persistence of Informal Credit in Rural India: Evidence from All-India Debt and Investment Survey and Beyond. Working paper No. 05/2013, Department of Economic and Policy Research, Reserve Bank of India, Mumbai, pp.312-314.

IV. Reddy, A. A. (2012). Structure of Indebtedness of Households in Semi-Arid Tropics of India. Agricultural Economics Research Review, 25, pp.473-483.

Additional Files



How to Cite

Dr. Mohan Sahni. (2020). CHALLENGES OF AGRICULTURE CREDIT IN INDIA. International Education and Research Journal (IERJ), 6(9). Retrieved from