There has been a significant pick up in credit flow to industry, services and personal loan segments during the current financial year. However, credit flow to agriculture has declined further, data released by the Reserve Bank of India as part of Macroeconomic and Monetary Developments Second Quarter Review 2010-11 shows. While credit flow to industry was highest at Rs 1,07,386 crore, credit flow to agriculture contracted by Rs 13,481 crore during...

A three-member team of experts, headed by economist Bibek Debroy, began its job of mapping a growth path of politically unstable Jharkhand today by meeting chief minister Arjun Munda and discussing the contours of a state development report. Working on a three-month time frame, Debroy, who was approached by Munda to take up the assignment, said his meeting with the chief minister was productive. “He has given us some thoughts to work...

Microfinance is an effective tool for financial inclusion. Here are some elements of the recently embattled sector The recent controversy surrounding the microfinance sector has entirely eclipsed the fact that it is the first effort in India to have delivered financial services to remote corners of the country in a self-sustaining manner. The stakes are high for India’s poor, and we have to pave the way for orderly growth in the...

The pattern of land distribution has rendered rural landscape of UP disfavourable for farming. The precursor for this is the fragmentation of cultivable land into a large number of `small landholdings'. The process set under the demographic pressure, has caused marginalisation of a vast majority of farmers and posed a severe challenge to the prospects of rural economy and the growth of agriculture in future. Going by the official figure, UP...

The accusation of ‘coercive' practices to recover the loans has been laid at the doors of some leading players Micro Finance institutions (MFIs) that are for profits are in the news for the wrong reasons. The ‘for profit' MFIs have grown spectacularly in recent times. But along with the large profits have come allegations of sharp practices. In Andhra Pradesh, where such MFIs have a sizable presence, the climate has now drastically...