2  BIS central bankers’ speeches  Table 2 Outstanding credit of scheduled commercial banks according to occupation (percent)  Source: BSR Returns, RBI; Others include transport operators, professional and other services, personal loans, trade finance and all others  The declining share of agriculture in GDP cannot be accepted as a valid reason for prescribing lower targets, as agriculture is an important sector considering the livelihood it generates for almost two-third of India’s population.
It is also critical for ensuring food security and poverty alleviation. Besides, it needs to be borne in mind that this sector does not have recourse to other sources of finance such as equity, Commercial Papers, etc. The inherent weakness in the co-operative structure restricts its ability to cater to credit needs of the agricultural sector. 7.