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An Analysis of Institutional Credit, Agricultural Policy and Investment to Agriculture in India

saravanan, saravanan (2016): An Analysis of Institutional Credit, Agricultural Policy and Investment to Agriculture in India.

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Abstract

Credit is an essential factor to determine the production and productivity in agriculture. For providing credit in India both Institutional sectors (Cooperative Banks, Commercial Banks and Regional Rural Banks) and non- Institutional sectors like money lenders, traders, landlords and relatives play significant. In order to increase the flow of credit the government of India introduced agriculture policy in 2004 to multiple credit to the farmers. At the same time, the role of both private and public sectors also contributes for agriculture in India. The cob-douglas production was used to determine the impact of institutional credit to agriculture GDP. In the cobb- douglas production function with agricultural GDP as dependent variable and institutional credit, net irrigated area, consumption of pesticide and consumption of fertilizer are independent variables. It was found that both institutional credit and net irrigated area had significant variables and other two variables are not significant.

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