Agriculture credit for small and marginal farmer in India problem and solution

Abstract

In India, the agriculture sector is a vital component economy as it provides livelihood to 75% of the population rural household. Agriculture employs approximately 55 per cent of the total workers. However, dependency on agriculture is declining as per Labour Bureau Report, 46.1% labour are engaged in agriculture employment. As per the World Bank report, 42% are engaged in agriculture employment. As Agriculture Census 2015-16, the total number of operational holdings in the country was 146 million and 157.14 million hectares total operated area out of which holding of small and marginal farmer account for 86% and 46.34% of the total operated area. In a nutshell, 14% of farmers hold 53% of the operated area . Indian economy is predominantly agricultural, and it has a significant role in the development of the Indian economy. However, the contribution of agriculture is declining year on year in GDP. In 1950 it was 52% has gone down to 30 per cent in the1990s and further below 20 per cent from 2010 onwards . A decline in the contribution of Agriculture GDP has a direct link to low agriculture productivity and income. shows the data comparison of the primary, secondary and tertiary sector .