Rajasthan Can Get ₹4.88 Lakh Crore for Key Sectors in 2026-27

A report from NABARD shows that Rajasthan can get a lot of money, ₹4.88 lakh crore, for its important sectors like farming and small businesses in the year 2026-27. This money can help the state grow and create more jobs.
By Newsroom | Economy, Rajasthan |

The National Bank for Agriculture and Rural Development (NABARD) has projected a significant credit potential of ₹4.88 lakh crore for Rajasthan's priority sectors in the financial year 2026-27. This assessment, detailed in the State Focus Paper (SFP), aims to guide financial institutions in aligning their lending plans with the state's developmental objectives and bridging credit gaps. The projected figure represents a substantial opportunity for growth, particularly in agriculture and the Micro, Small, and Medium Enterprises (MSME) sectors.

Context of the State Focus Paper

NABARD's State Focus Paper (SFP) is a critical document released annually to assess and project the credit potential available in various priority sectors within a state. For Rajasthan in FY27, this paper has identified a total credit potential of ₹4.88 lakh crore. This projection is designed to serve as a benchmark for the preparation of the annual credit plans by banks and other financial institutions operating in the state. The SFP consolidates district-wise and block-level credit potential, mapping both physical and financial opportunities to direct lending efforts.

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NABARD projects ₹4.88 lakh crore priority sector credit for Rajasthan - 1

  • The release of the SFP was a key event attended by state officials, including Chief Secretary V. Srinivas and NABARD Chief General Manager for Rajasthan, R. Ravi Babu.

  • The Chief Secretary highlighted the state's ₹6.11 lakh crore Budget outlay for the current fiscal year, emphasizing its role in driving investments in agriculture, rural infrastructure, and renewable energy.

  • NABARD's assessment is intended to align financial institutions' credit planning with the state's long-term development vision, known as Rajasthan@2047.

Distribution of Credit Potential

The projected credit of ₹4.88 lakh crore for FY27 shows a balanced approach between the agricultural and non-agricultural sectors, reflecting a strategy for comprehensive rural and industrial development.

  • Agriculture and Allied Activities: This sector is projected to receive a substantial ₹2.24 lakh crore. This allocation underscores the continued importance of farming and related enterprises in the state's economy.

  • Micro, Small, and Medium Enterprises (MSMEs): The MSME sector is allocated ₹2.27 lakh crore. This reflects a growing recognition of the MSME sector's pivotal role in industrial development, employment generation, and value addition, especially in rural and semi-urban areas.

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The nearly equal distribution between agriculture and MSMEs signals a deliberate effort towards fostering a balanced growth strategy that encompasses both farm-based and non-farm-based economic activities in Rajasthan.

NABARD projects ₹4.88 lakh crore priority sector credit for Rajasthan - 2

Role of Financial Institutions and Government Alignment

The success of achieving these credit projections relies heavily on the coordinated efforts of banks, line departments, and NABARD. The SFP acts as a roadmap, urging stakeholders to collaborate effectively.

  • NABARD's Chief General Manager, R. Ravi Babu, has urged banks and government departments to work in coordination to meet these credit targets.

  • The State Focus Paper also incorporates perspectives from stakeholders to address existing gaps by enhancing investment in agricultural infrastructure, collective production, value addition, and the formation of Farmer Producer Organizations (FPOs).

  • The state government, through its budget outlay, is also emphasizing investments in critical areas like rural roads, drinking water, and renewable energy, which are expected to complement the credit flow.

Previous Year's Assessment

While the current focus is on FY27, previous NABARD assessments provide a comparative context. For instance, a report from February 12, 2025, indicated a projected credit potential of ₹4.40 lakh crore for Rajasthan in FY25-26. In that projection:

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NABARD projects ₹4.88 lakh crore priority sector credit for Rajasthan - 3
SectorAllocationPercentage of Total
Agriculture & Allied47%
MSME Sector45%
Other Priority Sectors8%

This previous assessment indicates a trend of increasing credit potential being identified year on year.

Expert and Official Perspectives

The significance of the SFP and the projected credit figures has been echoed by various officials and experts:

NABARD projects ₹4.88 lakh crore priority sector credit for Rajasthan - 4

  • Shikhar Agarwal, Additional Chief Secretary (Industries and MSME), has highlighted the crucial role of the MSME sector in driving industrial development and employment. He emphasized the need for better coordination between financial institutions and government departments to ensure inclusive growth.

  • The Chief Secretary, V. Srinivas, views NABARD's initiative as instrumental in guiding financial institutions in line with the state's development priorities. He has called upon banks and departments to collaborate to achieve the projected credit targets.

Implications and Future Direction

The projection of ₹4.88 lakh crore in priority sector credit for Rajasthan in FY27 holds substantial implications for the state's economic landscape. It signals a strong intent to bolster key sectors crucial for rural and overall economic upliftment.

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  • The assessment is expected to facilitate last-mile credit delivery, empower women farmers and cooperative societies, and promote financial inclusion.

  • The focus on agriculture and MSMEs suggests a continued strategy to enhance household incomes and stimulate investment across a broad spectrum of economic activities.

  • The integration of district-wise and block-level data in the SFP aims to ensure that credit planning is localized and responsive to specific regional needs and opportunities.

Conclusion

NABARD's projection of ₹4.88 lakh crore in priority sector credit for Rajasthan in FY27 represents a significant financial blueprint aimed at fostering balanced economic growth. The clear allocation towards agriculture and MSMEs, coupled with the call for enhanced coordination among financial institutions and government bodies, indicates a concerted effort to leverage credit as a tool for rural and industrial development. This initiative, anchored by the State Focus Paper, is poised to guide lending strategies and contribute to the state's developmental goals.

Frequently Asked Questions

Q: What is the total amount of money expected for Rajasthan's priority sectors?
NABARD expects that Rajasthan can get ₹4.88 lakh crore for its important sectors in the financial year 2026-27.
Q: Which sectors will get most of this money?
The money is planned for farming and related areas, and for small and medium businesses (MSMEs).
Q: Who made this prediction?
The National Bank for Agriculture and Rural Development (NABARD) made this prediction in a report called the State Focus Paper.
Q: Why is this important?
This money can help these sectors grow, create jobs, and improve the economy of Rajasthan.