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2. Total Institutional Credit Flow for Agriculture
Interestingly, NABARD data presented in the previous section on the
total flow of institutional credit for agriculture from all banking institutions
including cooperatives, when the same are related to the sector’s output, inputs
and capital formation, generally confirm the earlier results.
First, the sectoral credit to GDP ratios. The historical series presented
in Annexure K show that there was an uptrend in these ratios in the
1970s and 1980s and general slowdown in the 1990s (For a summary, see
Table 8.3). With the commercial banks’ involvement in agricultural lending,
Table 8.2: Credit to Sectoral GDP Ratios and GDP Share
Year
Agriculture
Industry
Services
Credit to GDP
Ratio
Sectoral
GDP Share
Credit to
GDP Ratio
Sectoral
GDP Share
Credit to
GDP Ratio
Sectoral
GDP Share
1990-91
12.0
29.0
41.9
26.5
19.8
44.2
1998-99
9.5
25.8
43.8
25.7
19.1
48.3
2002-03
15.7
20.7
50.5
26.2
29.9
53.0
2003-04
17.7
20.8
49.0
26.0
32.2
53.2
2004-05
22.0
19.0
53.8
27.9
36.9
53.0
2005-06
27.1
18.8
59.4
28.1
43.1
53.1
2006-07
31.8
18.3
65.1
28.8
46.6
52.9
2007-08
32.8
18.3
69.8
29.0
50.3
52.7
2008-09
32.8
17.8
75.6
28.3
49.1
53.9
2009-10
36.0
17.7
79.9
27.8
48.0
54.5
2010-11
35.3
18.0
80.5
27.6
50.6
54.4
Source:
See the text
T
able 8..3: Direct Credit to GDP Ratios for Agriculture
(In percentages)
Selected
Years
Loans Issued by All Agencies
Loans Outstanding of All Agencies
Short-Term Long-Term Total
Short-Term Long-Term Total
1970-71
3.2
1.2
4.4
4.3
5.7
10.0
1980-81
4.2
2.9
7.1
6.7
8.9
15.6
1987-88
5.7
3.8
9.5
7.6
14.2
21.8
1990-91
3.9
2.7
6.6
6.5
12.5
19.0
1998-99
4.8
2.8
7.6
5.5
7.9
13.3
2001-02
7.6
3.1
10.9
9.1
12.1
21.2
2002-03
9.3
4.1
13.4
11.2
14.2
25.4
2005-06
14.8
7.8
22.6
16.9
20.6
37.5
2006-07
17.0
9.2
26.2
18.3
21.2
39.5
2007-08
16.3
7.0
23.3
19.4
16.6
36.1
2008-09
18.9
7.1
26.1
21.1
16.8
37.9
2009-10
20.8
7.4
27.5
23.7
16.8
40.4
(For details, see Annexure K)
