While empirically this is not the case, let me ask you all whether credit is an important component of raising productivity? If yes, then do we know the direction of credit? Can credit alone solve all the problems of declining or low agricultural productivity and how, after all, do we improve productivity?
I would like to focus on major trends in agricultural credit and its role in improving productivity. Trends in agricultural finance 16. In India, where the formal financial system is predominantly bank-oriented, banks play an important role in financing the needs of agricultural sector.