Parliament Question: Growth Rate of Bank Credit to Agriculture in Rural Areas

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. 3645 ANWERED ON MONDAY, AUGUST 10, 2026/SHRAVANA 19, 1948 (SAKA) Growth Rate of Bank Credit to Agriculture in Rural Areas 3645. MS. MAHUA MOITRA: Will the Minister of FINANCE be pleased to state: (a) the growth rate of bank credit disbursed to the agriculture and allied sector in rural areas for each of the last five financial years; (b) the growth rate of retail sales of two-wheelers and tractors in rural markets during the last five years; (c) whether either of these indicators shows acceleration in 2025-26 corresponding to the claimed rural wage growth of 17-18 per cent, if so, the details thereof; (d) the details of most recent assessment by Reserve Bank of India, if any, on rural demand conditions; and (e) whether the Government is likely to revisit its claim of a rural wage boom, if rural demand indicators remain flat through the remainder of 2026 and if so, the details thereof ? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) The credit disbursed to Agriculture and Allied Sector in the last five years is given below: (Amount in Rs. Lakh Crore) Agriculture & Allied FY Sector Credit disbursed 2021-22 18.6 2022-23 21.6 2023-24 25.5 2024-25 28.6 2025-26 30.0 Source: NABARD Over the last five years, total lending to Agriculture and Allied Sector have recorded a Compound Annual Growth Rate (CAGR) of 12.7%.(b) As per the Reserve Bank of India’s Bulletin, number of tractor sales in rural economy stood at 10.6 lakh in 2025‑26, as against 7.7 lakh in 2021‑22, reflecting CAGR of 8.3 %, and the number of two-wheeler sales in rural economy was 197.3 lakh in 2025‑26, compared with 123.7 lakh in 2021‑22, depicting a CAGR of 12.4 %. (c) In 2025‑26, the number of tractor sales in rural economy increased by 23% as compared to 2024‑25, and the number of two‑wheeler sales in the rural economy rose by 10% during 2025‑26 as compared with 2024‑25. (d) and (e) As per RBI’s latest Bulletin of July 2026, Domestic demand was supported by a sharp pick-up in rural demand in June 2026. Tractor sales as well as two-wheeler sales recorded robust growth, with the commencement of kharif sowing activities. *****