EMPOWERING AGRICULTURE GROWTH THROUGH FINANCIAL INCLUSION WITH REFERENCE TO MADHYA PRADESH

A. MISHRA¹*, R.S. RAIKWAR², M. RATI^3
1College of Agriculture, Tikamgarh, 472001, Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur, 482004, Madhya Pradesh, India
²College of Agriculture, Tikamgarh, 472001, Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur, 482004, Madhya Pradesh, India
³Barkatullah University, Bhopal, 462026, Madhya Pradesh, India
* Corresponding Author : doctoranil97@rediffmail.com

Received : 18-09-2019     Accepted : 26-02-2020     Published : 28-02-2020
Volume : 12     Issue : 4       Pages : 9542 - 9544
Int J Agr Sci 12.4 (2020):9542-9544

Keywords : Financial Inclusion, Econometric Financial model, State GDP, Inclusive Growth, Econometric
Academic Editor : Dr Vijay Prajapati, Er. P. K. Dhara
Conflict of Interest : None declared
Acknowledgements/Funding : Authors are thankful to College of Agriculture, Tikamgarh, 472001, Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur, 482004, Madhya Pradesh, India
Author Contribution : All authors equally contributed

Financial inclusion is emerging as new paradigm of economic growth. In India 68.84% (census 2011) population lives in rural area and rural finance is a matter of credit concern in the economy. Madhya Pradesh has reported the best productivity growth in terms of Agriculture over past few years, and has improved its infrastructure. This kind of change in one sector-agriculture-is initiating growth in the entire economy of the state. Agriculture in Madhya Pradesh (MP) grew at 9.7 percent per annum during the decade (2008-18). The last five years have been spectacular when agricultural growth rate stood at 18% percent per annum. The study intends to examine the influence of access to credit on agricultural productivity in Madhya Pradesh, based on the secondary data compiled from several sources it has been revealed that the formal credit to agriculture in real terms has increased in 2008-2018. The findings of the study show the evidence of long run relationship between production and agricultural credits provided to small and marginal farmers. The results revealed that total credit to agriculture has a positive and significant impact on the level of agriculture production in the region. One of the major findings was related to inadequacy of credit to small and marginal farmers. Therefore, more innovative models are required to be formulated using Econometric Financial Models for making the credit availability and accessibility more convenient. Thus, it can be concluded that formal agriculture credit is required for the inclusive growth of the economy of the state.

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