Impact of Priority Sector Lending in Agriculture: A Study on Select Districts in West Bengal


  • Nityalal Sen Bidhan Chandra College, Rishra, Hooghly, West Bengal, 712248
  • Ashish Kumar Sana Department of Commerce, University of Calcutta, Kolkata, West Bengal 700073, India



In India, until the late sixties, commercial banks mainly provided loans to big trade houses for commerce, trade, and business. The stream of loans toward priority sectors, primarily agriculture, weaker segments, and small businesses, is scarce. However, India cannot achieve balanced, equitable, and sustainable growth and development without developing the agriculture sector, given that over 50% of the population is involved. After the nationalization of commercial banks, the broad categories under priority sectors were agriculture, small-scale industry, and exports. The paper relies on primary data about priority sector lending in the agricultural industry of selected blocks in West Bengal to assess the effectiveness of PSL in this sector. The paper employs suitable statistical tools to measure the efficacy. Based on the analysis, results, and findings, the paper offers suggestions to improve the situation of small and marginal farmers and landless farmers, the central portion (around 85% of the agriculture sector) in West Bengal.


Agricultural Sector, Farmer and Rural Economic Development, Priority Sector Lending, Scheduled Commercial Banks


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How to Cite

Sen, N. ., & Sana, A. K. . (2024). Impact of Priority Sector Lending in Agriculture: A Study on Select Districts in West Bengal. International Journal on Recent Trends in Business and Tourism (IJRTBT), 8(2), 26-43.