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National Bank for Agriculture and Rural Development (Nabard) has welcomed the Budget by terming it as a very positive and reformist with a long-term view for the rural and farm sector.
The focus on increasing capital formation in the agricultural sector by upping the allocation under long term rural credit fund by three times to Rs 15,000 crore is a welcome step, Chairman HK Bhanwala told PTI.
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He said over the years, the level of capital formation within the agricultural GDP has slipped to 14% from a high of 17%, and such measures will help increase the share.
"This is a quantum jump and will also help protect agriculturists face any eventualities," Bhanwala said.
Bhanwala said continuation of the Rs 25,000-crore rural infrastructure development fund, stressing that this has to be seen as a force multiplier for the rural economy.
The Rs 5,300 crore support to micro-irrigation is also a highly welcome one, given the difficulties faced by the farmers, he said, calling it a long-term measure.
Similarly, the move to have a national market for agriculture is also a long-term reform measure which shall help the farmers, he said.
On the overall Rs 8.5 trillion agri-lending target, Bhanwala said this is an improvement from the Rs 8 trillion earmarked for FY15 and exuded confidence that the system will achieve the target.
The announcement to create up to 4 crore housing units in the rural sector before 2022 is also a big positive and will have a ripple effect on the rural economy.