2.1 Catalysing Economic Growth with Innovation and Investment

NABARD plays a crucial role in fostering comprehensive development across rural areas, agriculture, and allied sectors, with a steadfast focus on advancing financial inclusion and uplifting marginalised communities. Its strategic interventions are designed to bridge gaps in access to resources, empower vulnerable groups, and build resilient rural ecosystems. By aligning its initiatives with the Sustainable Development Goals (SDGs), NABARD ensures that its efforts drives inclusive growth while addressing critical challenges like poverty, inequality, and environmental sustainability. By extending credit, offering technical assistance, fostering technological advancements, and providing developmental support, NABARD empowers farmers, rural entrepreneurs, institutions, and grassroots collectives such as Farmer Producer Organisations (FPOs), Off-Farm Producer Organisations (OFPOs), Self-Help Groups (SHGs), and Joint Liability Groups (JLGs). This comprehensive approach underpins the long-term economic sustainability of rural communities. In addition to economic interventions, NABARD actively promotes sustainable agricultural practices, renewable energy adoption, and rural infrastructure development, creating a balanced synergy between environmental conservation, social equity, and economic growth. Its efforts ensure that rural development progresses in harmony with ecological preservation and societal well-being.

NABARD also drives innovations in rural enterprises through Rural Business Incubation Centres (RBICs), fostering startups and cultivating an entrepreneurial mindset among rural populations. Furthermore, NABARD emphasises innovation in its existing products while developing and launching new, innovative solutions tailored to the evolving financial sector landscape, the changing needs of its clientele, and the emerging dynamics of rural economies. By integrating these advancements with its focus on digitalisation and capacity building, NABARD equips rural communities with the tools to thrive in a rapidly transforming economy. These initiatives bridge gaps in access, enhance self-reliance, and solidify NABARD’s role as a transformative force driving rural prosperity and resilience.

NABARD has successfully managed to strike a harmonious balance between financial stability and its development initiatives, leaving lasting impact on its development partners and the public. This is evident from its strong asset quality, consistently high Capital to Risk Weighted Assets Ratio (CRAR), and robust financial resilience. Furthermore, NABARD’s employee productivity ensures efficient operations that maximise its impact. The organisation's gross income showcases its effective resource utilisation, further strengthening its financial stability. NABARD’s substantial balance sheet size also highlights its key role in promoting economic growth and rural development.

NABARD’s balance sheet has almost doubled, increasing from ₹4.9 trillion in 2018-19 to ₹9.1 trillion in 2023-24. This impressive growth, marked by a compound annual growth rate (CAGR) of 13.2% has laid a formidable foundation for our developmental initiatives.