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NABARD has projected a priority sector credit potential of INR 49,795.58 crore for Jammu and Kashmir for 2026-27, outlining the estimate in its Potential Linked Plan. The focus paper, released at a recent credit seminar, highlights agriculture, allied sectors, MSMEs and rural infrastructure as key growth areas. The plan stresses last-mile credit inclusion, universal Kisan Credit Card coverage, support for FPOs, horticulture expansion and value addition in handicrafts. Officials emphasised integrated planning, skill-based lending and technology-driven credit delivery to strengthen rural livelihoods.
The National Bank for Agriculture and Rural Development has estimated a priority sector credit potential of INR 49,795.58 crore for Jammu and Kashmir for the financial year 2026-27, according to an official spokesperson. The projection forms part of NABARD's Potential Linked Plan, which serves as a roadmap for credit flow and development priorities in the Union Territory. Advertisement
NABARD has been supporting inclusive development in Jammu and Kashmir through structured credit planning, agricultural modernisation initiatives, digital traceability projects and value chain support for Farmer Producer Organisations. These efforts are aimed at strengthening farm and non-farm livelihoods while improving access to institutional finance.
The focus paper outlining the projections was released during a credit seminar organised by NABARD, which brought together policymakers, bankers and other stakeholders to discuss strategies for sustainable and inclusive growth. Chief Secretary Atal Dulloo said the projections were realistic and achievable, and stressed the importance of ensuring universal coverage of Kisan Credit Cards along with timely and adequate credit to farmers.
He highlighted the theme of last-mile credit inclusion, stating that the Potential Linked Plan is a key planning tool to guide both credit delivery and development interventions. Emphasis was placed on moving agriculture from subsistence-level activity to commercially viable operations, with greater attention on infrastructure creation, processing facilities, value addition, term lending and promotion of niche crops. Medicinal and aromatic plants were identified as areas with strong income potential.
The chief secretary also called for an integrated approach involving universities, banks and line departments to improve outcomes on the ground. He pointed to opportunities in wool processing and fisheries, and stressed the need to extend credit support to self-help groups and women entrepreneurs, including those emerging under the Lakhpati Didi initiative.
Further, he referred to the positive outcomes of Mission YUVA and underlined the need to prioritise skill-based lending over collateral-based financing. Other focus areas included promoting homestays to decentralise tourism, technology upgradation and traceability in handicrafts, and the rollout of the Unified Lending Interface, which was described as a potential game changer for credit delivery in Jammu and Kashmir. During the event, micro ATMs were also distributed to banking correspondents associated with J&K Grameen Bank.
According to NABARD, the focus paper provides sector-wise credit projections with strong emphasis on agriculture and allied activities, MSMEs, farm and non-farm sectors, and rural infrastructure. Special attention has been given to increasing agricultural credit flow, strengthening FPOs and rural MSMEs, expanding productivity and cultivated area in key horticulture crops such as apple and saffron, and supporting handloom and handicrafts through value addition, structured marketing and Geographic Indication registration.
NABARD's General Manager and Officer-in-Charge for the region, Vikas Mittal, reiterated the institution's commitment to strengthening rural credit, agriculture, allied sectors, MSMEs and rural infrastructure. He highlighted the importance of collaborative planning, close coordination with stakeholders and targeted interventions to unlock the region's economic potential.
Source PTI
FAQ
Q1. What priority sector credit potential has NABARD projected for Jammu and Kashmir for 2026-27?
NABARD has projected a priority sector credit potential of INR 49,795.58 crore for Jammu and Kashmir for the financial year 2026-27. This estimate has been outlined in its Potential Linked Plan, which acts as a planning framework for banks and development agencies to align credit flow with the Union Territory's economic and livelihood priorities.
Q2. Which sectors are expected to drive this projected credit growth?
The projected credit potential is largely driven by agriculture and allied activities, MSMEs, and rural infrastructure. NABARD has identified farming, horticulture, fisheries, wool processing, handicrafts and small enterprises as key growth areas, with a strong emphasis on strengthening both farm and non-farm rural livelihoods through better access to institutional finance.
Q3. How does NABARD plan to improve last-mile credit inclusion in J&K?
The Potential Linked Plan places strong emphasis on last-mile credit inclusion, including universal coverage of Kisan Credit Cards and timely credit delivery to farmers. NABARD has stressed the need to reach underserved regions and small borrowers through simplified processes, technology-enabled lending platforms and closer coordination between banks and line departments.
Q4. What role do value addition and commercialisation play in the plan?
A major focus of the plan is to move agriculture beyond subsistence and towards commercially viable activities. This includes investment in infrastructure, processing units, value addition, and term lending. Special attention has been given to horticulture crops such as apple and saffron, medicinal and aromatic plants, and structured support for handicrafts through better marketing, traceability and Geographic Indication registration.
Q5. How are MSMEs, women entrepreneurs and youth initiatives addressed?
The plan highlights credit support for MSMEs, self-help groups and women entrepreneurs, including beneficiaries under initiatives such as Lakhpati Didi. NABARD and the J&K administration have also emphasised Mission YUVA and skill-based lending, encouraging banks to prioritise the viability of business ideas over traditional collateral-based financing, especially for youth-led enterprises.
Q6. What institutional and technological measures are expected to support credit delivery?
Officials stressed the need for integrated planning involving universities, banks and government departments to improve outcomes. Technology-driven initiatives such as digital traceability, the Unified Lending Interface and micro ATMs for banking correspondents are expected to strengthen credit outreach, improve transparency and make rural and agricultural lending in Jammu and Kashmir more efficient and accessible.
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