Kisan credit card’s impact on agricultural economy

Abstract

Agriculture is an essential component of the Indian economy as it provides a large section of the population with a livelihood. According to the 2011 census, there are 118.7 million farmers and 144.3 million agricultural workers out of the total workforce of 481.7 million, which indicates that approximately 55 percent of the entire workforce is working in agriculture and the related business. However, there has been a decline in the percentage of workers in the agricultural sector. According to the 2015-16 Labor Bureau Report, 46.1 percent of the workforce was employed in agriculture and the related sector. Further, as per an ILO estimate, employment in the agriculture sector as a percentage of the total employment was approximately 44 percent in the year 2018. Because of its contribution to employment and GDP, agriculture is a crucial sector of the Indian economy. Agricultural credit plays a vital role in the development of the agricultural sector and facilitates the adoption of new technologies. Even at the most reasonable rates, however, any amount of credit can not guarantee higher productivity or adequate income among farmers, as success depends on many other supporting factors, including the availability of agricultural inputs, services, and remuneration markets for the products.