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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.