RURAL FINANCIAL INSTITUTIONALS IN INDIA

Agriculture assumes greater importance in a developing country like India for its varied contributions to the national economy.Nearly 72 per cent of the total population directly depends on this sector for their livelihood.In making available the three basic needs for human existence viz., food, shelter and clothing, agriculture leads over all the other sectors of the economy.In addition to these, it provides all the fodder that is needed to sustain livestock whose number runs into several crores.Agriculture sustains much of the non-agricultural activities of the economy pertaining to manufacture, trade and transport.For a variety of manufacturing industries, it provides raw materials or inputs.Agricultural goods continue to figure considerably in both the export and import trades.The importance of such goods lies in the foreign exchange that exports make available, and the imports of goods that they make possible.In this way, agricultural exports and imports play a vital role in the foreign trade of the country.