NABARD pegs FY27 priority sector credit potential of Telangana at ₹4.43 lakh crore

The National Bank for Agriculture and Rural Development (NABARD) has estimated the total priority sector credit potential of Telangana for 2026–27 at ₹4.43 lakh crore.

It is a 15% increase compared to ₹3.86 lakh crore in the previous fiscal and reflects growth prospects across agriculture, MSMEs, infrastructure and services, NABARD said in its State Focus Paper (SFP) for 2026-27 assessing Telangana’s sector-wise credit potential and absorption capacity under the priority sector lending.

The emphasis is on agriculture and allied activities, including agricultural infrastructure, food and agro-processing, animal husbandry, fisheries, and farm mechanisation, alongside potential MSME financing, renewable energy, education, housing, and social infrastructure. Focus areas also include strengthening farmer producer organisations, modernisation of cooperatives and PACS, promotion of GI-based clusters, and scaling up climate-resilient and sustainable agricultural practices, NABARD said in a release on the State Credit Seminar 2026-27 it organised on Monday in Hyderabad.

The SFP has been prepared through a participative, district-level consultative process and serves as the base for formulation of the annual credit plan 2026–27 by the State Level Bankers’ Committee (SLBC). The paper identifies sector-specific and region-specific opportunities across all 33 districts, while also flagging infrastructure gaps and enabling policy-credit convergence for inclusive growth, Chief General Manager, NABARD, Telangana Regional Office B.Uday Bhaskar said.

Addressing the seminar, Chief Secretary to Telangana government K. Ramakrishna Rao appreciated the strong convergence between the Telangana Rising Vision Document 2047 and NABARD’s SFP, describing it as timely and well aligned.

Telangana is on a path to achieve a $1 trillion economy by 2034 and a $3 trillion economy by 2047, requiring integrated and forward-looking planning. Agriculture contributes 16–17% to GSDP and supports 46% of the workforce, with an average monthly farm income of ₹9,800, underscoring the need to shift towards high-value crops, value addition and agribusiness models. He urged banks and SLBC to align sector-wise credit plans with Telangana Rising Vision 2047 and translate plans into measurable outcomes, focusing on farmers, SHGs and weaker sections for inclusive and sustainable growth.

RBI Regional Director Chinmoy Kumar said Telangana Rising Mission Document 2047 is well-aligned with NABARD’s State Focus Paper. Telangana Farmers’ Commission Chairman Kodanda Reddy urged banks to extend loans to tenant farmers.