Agriculture is core sector of Indian economy. A large number of people, especially rural farmers are largely depending on agriculture sector for their livelihood. The role of agriculture sector is very crucial, because it is providing employment to a large chunk of people in the country. However, the agriculture sector of India is facing many problems which includes lack of proper investment in agriculture sector. Therefore, a strong need was felt to establish an emphatic formal credit system, which not only prevents farmers from exploitation by informal sector credit agents, but also to create a smooth-out consumption patterns of farmers and also to facilitate them a better livelihood facility. Therefore, primary objective of the present paper is to make the descriptive analysis on various issues and challenges faced by small and marginal farmers to access the credit system and measures taken by government of India for the welfare of farmers. Secondary objective is to examine the efficiency of agriculture credit system in India and also the role of agriculture sector towards Agricultural development.
Pandey et al. (Fri,) studied this question.