The next changes, like the ones made so far, will need to be well-designed, so as to effectively improve the functioning of the economy, without hampering liquidity in the system, and, once macroeconomic and financial stability has been consolidated, to ultimately remove the restrictions. 4.
It derives its significance from the fact that there are about 140 million farming households of which more than 80 per cent are small and marginal farmers. Linking these farmers to formal financial services is a significant challenge. If agriculture has to support investment for the small and marginal farmers, promoting agri-business through development of value chains looks very promising.