A Study Relating to Diversion of Agricultrual Credit
Journal Title: International Journal of Economics, Commerce and Research (IJECR) - Year 2017, Vol 7, Issue 5
Abstract
Agricultural development is an integral part of overall economic development of country like India. Though, the share of agricultural sector in gross domestic product (GDP) of India, has reduced from 58 percent (1951-52) to about 17.3 percent (2016-17), still it is considered a decisive driver, in order to achieve 8 to 9 percent growth in GDP. For agricultural development, adequate and timely availability of credit to the farmers is vital and indispensable, as it acts as a catalyst, to move the farmers from traditional to modern agriculture. Agricultural institutional credit has been growing continuously, after the nationalization and other banking sector reforms. But, past experience shows declining trend, in recovery performance of the banks and rural indebtedness, which is affecting adversely the disbursement of agricultural credit. The main reason behind the problem of low recovery is, misutilization of agricultural loan amount, as farmers do not utilize the loan amount, for the purpose for which it is taken. It becomes more dangerous, when agricultural credit amount is utilized for unproductive purposes, which do not generate any income. In light of the above, an attempt has been made in this paper, to analyze the different aspects relating to diversion of loans. The results indicate that, among purposes, 'Buying other inputs' and 'Consumption' are the main purposes, for the diversion of loan followed by 'Meeting social expenses'.
Authors and Affiliations
Ajit Singh
Keywords
Related Articles
- EP ID EP252089
- DOI -
- Views 120
- Downloads 0
Convergence of Socioeconomic Progress Across Indian States
This paper examines the issue of convergence of various socioeconomic indicators among Indian states. The study is comprehensive in the sense that it does not only concentrate on Income convergence, convergence of human...
AWARENESS ABOUT CASH LESS ECONOMY AMONG STUDENTS
The purpose of this study was to examine awareness about the cashless economy among students. The main objectives of this study to know the student’s awareness level and knowledge regarding the cashless ec...
A Study Relating to Diversion of Agricultrual Credit
Agricultural development is an integral part of overall economic development of country like India. Though, the share of agricultural sector in gross domestic product (GDP) of India, has reduced from 58 percent (1951-52)...
WHY COMPANIES FAIL? THE BOILING FROG SYNDROME
Why do nations fail? An answer is given by Acemoglu and Robinson (2012) by pointing out the importance of institutions for an economy that leads to innovations for economic growth. Christensen (2012) asks a similar quest...
ANALYSIS OF THE MAIN FACTORS AFFECTING M-COMMERCE ADOPTION IN IRAQ
The telecommunications sector in Iraq is one of the most dynamic and active industries. This sector has prime importance only next to oil & gas, as revealed by recent reports. This industry has grown in leaps and bounds...