Objectives and Role of Institutional Finance for Agricultural and Rural Development

Abstract

In India, rural institutional finance is extended not only to the agricultural production sub-system but for selective purposes also to the agricultural inputs sub-system and the agricultural produce marketing and processing sub-system. While this innovative policy has earned some dividends, there are some lacunae in it as well as in the intermediation instruments of rural financial institutions.Desai identifies these lacunae and discusses how they may be overcome to achieve the objectives of high rural growth, better equity, and viability of institutional finance.