Gross capital formation in agriculture relative to agriculture and allied GDP improved slightly from 11.2 per cent in 1999-2000 to 14.2 per cent in 2007-08. The rise is largely contributed by the public sector whose share rose from 6.0 per cent 1999-2000 to 8.2 per cent in 200607; the corresponding share from the private sector fell from 10.2 per cent to 7.0 per cent.
From point of view of agricultural credit, the broad policies followed are: •  Mandating that 18% of commercial bank credit is lent to agriculture of which at least 13.5 % has to be for direct agriculture. Policy of doubling of agricultural credit in three years started in 2004-05.