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The National Bank for Agriculture and Rural Development has projected Madhya Pradesh's priority sector credit potential at INR 3,75,384.29 crore for the financial year 2026-27, underscoring the continued dominance of agriculture in the state's economy. Presented during the State Credit Seminar in Bhopal, the State Focus Paper highlighted that agriculture contributes over 44 per cent to the state's gross state domestic product, driving sustained demand for institutional finance. Of the total projected credit, more than INR 2.08 trillion has been earmarked for agriculture and allied activities, while INR 1.46 trillion has been assessed for the MSME sector. The projections also cover sectors such as housing, renewable energy and social infrastructure, reflecting a broad-based assessment of the state's rural and economic development needs.
The National Bank for Agriculture and Rural Development (NABARD) has projected Madhya Pradesh's total priority sector credit potential at INR 3,75,384.29 crore for the financial year 2026-27, signalling strong financing requirements across agriculture, MSMEs and allied rural sectors. The projection was outlined in NABARD's State Focus Paper, which was presented during the State Credit Seminar held in Bhopal earlier this week. Advertisement
According to the paper, agriculture continues to be the backbone of Madhya Pradesh's economy, contributing 44.36 per cent to the state's gross state domestic product. This structural dependence on agriculture has translated into sustained demand for institutional credit to support farm production, infrastructure development and allied activities. The State Focus Paper is based on a detailed assessment of the state's agricultural potential, MSME ecosystem and rural development requirements.
Out of the total projected priority sector credit of INR 3,75,384.29 crore for FY27, NABARD has earmarked INR 2,08,743.78 crore for the agriculture sector. This includes farm credit, agriculture infrastructure financing and credit for ancillary activities linked to farming. The assessment estimates farm credit potential at INR 1,79,589.97 crore, while agriculture infrastructure is expected to require INR 6,461.67 crore. Ancillary activities such as dairy, fisheries and allied services have been assessed at INR 22,692.14 crore, reflecting the growing diversification within the rural economy.
The MSME sector has been projected to require INR 1,46,269.36 crore in credit during FY27, highlighting its expanding role in employment generation and value addition across the state. NABARD officials indicated that the remaining INR 20,371.15 crore under the priority sector projection would be directed towards areas including export credit, education, housing, social infrastructure, renewable energy and other eligible segments.
Madhya Pradesh remains one of India's leading producers of wheat, rice, soybean, gram, pulses and oilseeds. This production strength points to ongoing credit requirements for crop cultivation, farm mechanisation, irrigation systems, storage facilities and value chain development. NABARD noted that adequate and timely credit flow would be critical to sustaining agricultural productivity and improving farmers' incomes.
During the seminar, NABARD's chief general manager C Saraswathi highlighted the institution's developmental interventions in the state during 2024-25. She said NABARD had extended financial assistance of INR 27,331 crore during the year, of which INR 4,132 crore was provided to the Madhya Pradesh government for rural infrastructure creation under the Rural Infrastructure Development Fund. The remaining INR 23,199 crore was extended as refinance support to rural financial institutions, strengthening last-mile credit delivery.
The seminar was attended by state ministers Vishwas Sarang and Aidal Singh Kansana, along with senior bankers and officials from various government departments. The discussions focused on aligning banking strategies with the projected credit potential to ensure effective implementation of development priorities across Madhya Pradesh.
Source - PTI
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