Agricultural Credit Policies in India A Study of Changing Trends and Policy Reforms with Special Reference to Rajasthan

Agriculture plays a pivotal role in the economic structure of Rajasthan and remains a major contributor to the state’s Gross State Domestic Product (GSDP). Despite the expansion of the industrial and service sectors, agriculture and allied activities—including livestock, forestry, and fisheries—contribute nearly one-fourth of Rajasthan’s Gross State Value Added (GSVA), underscoring the sector’s continued economic significance. Given the state’s diverse agro-climatic conditions and predominantly rural population, agricultural performance is closely linked to overall economic stability and employment generation. In this context, agricultural credit policies have emerged as a crucial support mechanism by facilitating access to institutional finance for farmers, enabling investment in modern inputs, irrigation, mechanization, and risk-mitigating practices. Government initiatives such as priority sector lending, Kisan Credit Cards, interest subvention schemes, and cooperative and regional rural banking networks have strengthened farm productivity and income resilience. Effective agricultural credit delivery not only enhances production and rural livelihoods but also plays a strategic role in sustaining Rajasthan’s economic growth and addressing challenges arising from climatic variability and resource constraints. The main aim of this paper is To critically analyse the credit policies and schemes of the government and their economic impact on the farmers of the Bharatpur division.