NABARD has projected a priority sector credit potential of ₹4.47 lakh crore for Karnataka during the financial year 2025-26, with agriculture, MSME, and other priority sectors expected to see significant allocations.

BulletsIn

• The total projected credit potential for Karnataka stands at ₹4.47 lakh crore for the financial year 2025-26.
• Agriculture will receive the largest share, estimated at ₹2.04 lakh crore (46% of total potential).
• MSME sector will receive ₹1.88 lakh crore, making up 42% of the total credit potential.
• Other priority sectors are expected to receive ₹0.56 lakh crore, accounting for 12%.
• This projection was shared by KVSSLV Prasada Rao, CGM, NABARD, during the State Credit Seminar held in Bengaluru on February 25, 2025.
• NABARD’s role in facilitating government efforts includes RIDF assistance of ₹2,056 crore sanctioned for the state.
• NABARD is actively involved in promoting Farmers Producers’ Organisations (FPOs) to integrate small and marginal farmers into the agricultural value chain.
• These FPOs have proven effective in enhancing the income of farmers by involving them in broader agricultural activities.
• The initiative aims to strengthen Karnataka’s agricultural and rural economy by ensuring better access to financial resources and markets.
• The credit potential is a crucial part of Karnataka’s development strategy, focusing on sustainable growth for agriculture and MSME sectors.