The National Bank for Agriculture and Rural Development (NABARD) has projected a credit potential of ₹2,106.34 crore for Nagaland under priority sector lending for the financial year 2025-26. This announcement was made during a seminar where the State Focus Paper (SFP) was officially released by Advisor for Agriculture, Mhathung Yanthan.
The State Focus Paper (SFP) provides a comprehensive analysis of Nagaland’s credit potential, particularly in sectors like agriculture, MSMEs, rural development, and infrastructure projects. The initiative aims to strengthen economic growth, create employment opportunities, and enhance financial accessibility in the state.
Breakdown of NABARD’s Credit Projections for Nagaland
According to the SFP report, NABARD has allocated credit potential across different priority sectors:
- ₹712 crore for agriculture, including crop production, livestock, and allied activities
- ₹968 crore for Micro, Small, and Medium Enterprises (MSMEs) to boost entrepreneurship and industrial development
- ₹425 crore for other sectors, including infrastructure, education, housing, and rural development
Speaking at the seminar, NABARD General Manager Pauliankap Bulte emphasized that these projections would serve as a roadmap for financial institutions to channel credit effectively into Nagaland’s economy.
Strengthening Nagaland’s Agricultural Sector with ₹712 Crore Allocation
Agriculture is a key driver of Nagaland’s rural economy, and NABARD’s ₹712 crore allocation is set to boost various agricultural activities, including:
- Crop cultivation (rice, maize, pulses, and horticulture)
- Animal husbandry, including dairy farming and poultry
- Sericulture and fisheries, which have significant potential for revenue generation
- Agro-processing and value chain development, to enhance productivity and market linkages
Nagaland’s dependence on agriculture necessitates better credit access for farmers, which will help in modernizing farming practices, improving yield, and ensuring sustainable growth.
Boosting MSMEs with ₹968 Crore Credit Support
The MSME sector is a critical pillar of Nagaland’s economy, contributing significantly to employment generation and industrial growth. With an allocation of ₹968 crore, NABARD aims to:
- Encourage entrepreneurship by providing easy access to credit
- Support startups and small businesses in manufacturing, retail, and services
- Promote skill development and innovation
- Strengthen cottage industries, including handloom and handicrafts
This financial boost will help local artisans, weavers, and small-scale entrepreneurs scale their businesses and contribute to Nagaland’s economic growth.
Infrastructure & Other Sectors Get ₹425 Crore Funding
The remaining ₹425 crore will be directed towards key infrastructure projects and other priority sectors, including:
- Rural development initiatives like roads, water supply, and sanitation
- Educational institutions and vocational training centers
- Affordable housing projects to improve living standards
- Renewable energy projects to promote sustainability
By enhancing rural infrastructure, NABARD aims to create a conducive environment for economic growth and social progress.
NABARD’s Role in Nagaland’s Economic Development
The NABARD State Focus Paper (SFP) plays a crucial role in guiding banks, financial institutions, and policymakers to identify investment priorities and allocate funds effectively.
Some of NABARD’s ongoing efforts in Nagaland include:
- Financial inclusion programs to bring more people under formal banking services
- Capacity-building initiatives for farmers, entrepreneurs, and self-help groups
- Support for rural development projects to improve infrastructure and connectivity
- Promotion of sustainable agriculture through credit-linked schemes and technology adoption
These initiatives align with Nagaland’s long-term economic goals and the Government of India’s vision for rural and agricultural development.
Challenges & The Way Forward
Despite the positive credit outlook, Nagaland faces challenges such as:
- Limited financial literacy among rural communities
- Difficult terrain and connectivity issues affecting infrastructure projects
- Dependency on traditional farming methods, which need modernization
To overcome these challenges, NABARD will focus on:
- Strengthening rural banking networks
- Providing training and workshops on credit utilization and entrepreneurship
- Encouraging digital financial services for better accessibility
With proper financial planning and implementation, the ₹2,106 crore credit allocation can unlock immense potential for Nagaland’s growth.
A Transformational Step for Nagaland’s Economy
NABARD’s ₹2,106 crore credit projection for 2025-26 marks a major step towards Nagaland’s economic transformation. By prioritizing agriculture, MSMEs, and infrastructure, the initiative aims to empower local communities, generate employment, and drive sustainable development.
With the right support from banks, government agencies, and financial institutions, this strategic credit investment will help Nagaland achieve greater economic self-sufficiency and long-term prosperity.