Context:

• Haryana government  has recently unveiled an ambitious credit plan for the fiscal year 2025-26, marking a significant step towards enhancing rural economic development and promoting financial inclusion.

Key Points:

The credit potential outlined in Haryana's plan is strategically distributed across key sectors, ensuring a balanced approach to economic development:

• Agriculture: 35.60% of the total credit is allocated to agriculture, underscoring the state's commitment to enhancing agricultural productivity and sustainability.
• Micro, Small, and Medium Enterprises (MSMEs): A substantial 57.12% of the total credit is earmarked for MSMEs, recognizing their critical role in job creation and economic growth.
• Other priority sectors: The remaining 7.28% is allocated to other priority sectors, including education and renewable energy, reflecting a holistic approach to rural development.

Strategic vision and challenges

Haryana's Chief Secretary, Vivek Joshi, has emphasized the state's agricultural prowess while acknowledging several critical challenges that need to be addressed:

• Depleting groundwater: The state faces an urgent need for sustainable water management practices to combat the declining groundwater levels, which are vital for agricultural productivity.
• Fragmented landholdings: The prevalence of small and fragmented landholdings necessitates innovative agricultural strategies to enhance productivity and income for farmers.
• Climate change: The impacts of climate change demand the adoption of adaptive agricultural practices to ensure resilience against extreme weather events.
• MSME sector growth: Targeted financial support is essential for the growth and sustainability of the MSME sector, which is crucial for rural employment and economic diversification.

Key focus areas

To address these challenges, Haryana's credit plan outlines several key focus areas:

Agricultural development

• Crop diversification: The plan encourages farmers to move beyond traditional farming models by diversifying crops, which can enhance income stability and reduce dependency on a single crop.
• Climate-resilient agriculture: Developing adaptive farming techniques is essential to mitigate the impacts of climate change and ensure food security.
• Innovative farming initiatives: The plan promotes innovative practices such as:
  • Shrimp farming: Exploring aquaculture as a viable income source.
  • Promoting vegetable clusters: Encouraging the cultivation of high-value vegetables to boost farmers' incomes.
  • Precision horticulture using robotics: Leveraging technology to optimize resource use and improve yields.

Financial inclusion strategies

To enhance financial inclusion, the plan includes several initiatives:

• Micro-irrigation schemes: Promoting efficient water use through micro-irrigation techniques to support sustainable agriculture.
• Financial literacy campaigns: Educating farmers about financial products and services to empower them in making informed decisions.
• Digital initiatives: Enhancing credit and market access through digital platforms, including the computerization of Primary Agricultural Cooperative Societies (PACS).
• Expansion of Mobile ATMs and Business Correspondents (BCs): Increasing access to banking services in rural areas to facilitate financial transactions.

Looking ahead

• Haryana's ambitious credit plan for the fiscal year 2025-26 represents a comprehensive strategy aimed at addressing the multifaceted challenges of rural economic development and financial inclusion. By focusing on technological innovation, sector diversification, and a collaborative approach, the state aims to transform its agricultural landscape and empower its rural population.