CHENNAI: Finance Minister Thangam Thennarasu on Wednesday released the State Focus paper prepared by National Bank for Agriculture and Rural Development (NABARD) that predicts a total credit potential of Rs 9.37 lakh crore for priority sectors in the state for the year 2025-26.
This represents a 12.41% increase over the credit potential for the current financial year 2024-25, which was fixed at Rs 8.3 lakh crore. The agriculture sector accounted for 46% (Rs 4.34 lakh crore) of the total projection, while the MSME sector (Rs 3.45 lakh crore) is expected to contribute approximately 37%, reflecting the growing demand for credit in this area.
Speaking during the State Credit Seminar for Financial Year 2025-26, the finance minister highlighted NABARD’s support for creation of rural infrastructure assisting to the tune of Rs 31,887 crore for 47,295 projects. The minister said NABARD’s suggestions will be considered by the state to create necessary infrastructure to facilitate credit flow to weaker sections, MSMEs, and self help groups.
Chief Secretary N Muruganandam urged bankers to channelise credit to ensure equitable credit flow in agriculture, focusing on small and marginal farmers. He said though agriculture’s contribution to the state’s economy has dropped to 13%, nearly 45 % of the rural population is dependent on agriculture.
He also urged NABARD and other banks to focus more on tribal development, stating the state has 10 lakh tribals.
Apart from the state focus paper, two booklets, ‘Empowering Rural Tamil Nadu’, and ‘NABARD Assisted Infrastructure Projects- Impact in Tamil Nadu’ were also released during the seminar.
Finance Secretary T Udhayachandran, secretary for civil supplies department J Radhakrishnan, chief general manager of NABARD R Anand were also present.