How Institutionalized is Indias Rural Finance Across Farm and Non-Farm Households- a Public Policy Perspective

Abstract

The present paper empirically examines the determinants of participation in institutional and non-institutional cred it across farm and non-farm sector in Rural India .Multinomial Logistic Regression has been applied for categorizing household s' participation in credit markets in the following four categories viz. Participation in only Institutional Credit (PIC), Participation in only Non-Institutional Credit (PNIC), Participation in Both Sources of Credit (PBC), and Participation in Neither Source of Cred it (P C).Both household and state-level determinants have been ana lysed as correlates of participation in credit markets. Household dataset is sourced from the Situation Assessment Survey (NSSO, 70th round), and state-level datasets from Basic Road Statistics 2016, Agricultural Statistics immediately 2016, Rainfall Statistics of India 2014, Database on Indian Economy RBI, 2013 and Census 2011.