NE ECONOMIC BUREAU
HYDERABAD, FEB 10
The National Bank for Agriculture and Rural Development (NABARD) organised the State Credit Seminar 2026-27 for Telangana on Monday at Hyderabad, marking an important step in strengthening the credit flow from Banks to the priority sectors covering agriculture and allied activities in the State.
The Seminar witnessed the participation of Kodanda Reddy, Chairman, Telangana Farmers’ Commission, senior officials from the Government of Telangana, Chinmoy Kumar, Regional Director, Reserve Bank of India, Priyabrata Mishra, DGM, State Level Bankers’ Committee, Commercial Banks, Cooperative Institutions, RRBs, Agricultural and Horticultural universities, Research Institutions, and other key stakeholders engaged in rural and economic development.
On the occasion, NABARD released the State Focus Paper (SFP) for FY 2026-27, presenting a comprehensive assessment of Telangana’s sector‑wise credit potential and absorption capacity under priority sector lending. NABARD has estimated a total priority sector credit potential of ₹4.43 lakh crore for the State in 2026–27, registering a 15 per cent increase over the previous year, reflecting strong growth prospects across agriculture, MSMEs, infrastructure and services.
Speaking at the Seminar, B. Uday Bhaskar, Chief General Manager, NABARD, Telangana Regional Office, stated that the State Focus Paper has been prepared through a participative, district‑level consultative process and serves as the base for formulation of the Annual Credit Plan (ACP) 2026–27 by SLBC. He highlighted that the SFP identifies sector‑specific and region‑specific opportunities across all 33 districts, while also flagging infrastructure gaps and enabling policy‑credit convergence for inclusive growth.
Kodanda Reddy urged the Banks to extend loans to Tenant Farmers. He said that the Government of Telangana also is supporting the farmers through various Schemes. He appreciated NABARD’s efforts in bringing valuable data on the potential for credit to Agriculture Sector in the State of Telangana. He also advised the Cooperative Banks to adopt technology-enabled solutions for effective delivery of crop loans.
Chinmoy Kumar, Regional Director, Reserve Bank of India, asserted that the Telangana Rising Mission Document 2047 is well-aligned with NABARD’s State Focus Paper. He acknowledged the pivotal role NABARD is playing in the development of Telangana through a wide range of developmental initiatives across agriculture, rural livelihoods and MSMEs.
Priyabrata Mishra, Deputy General Manager, SLBC/SBI, appreciated NABARD for bringing out the State Focus Paper 2026-27 which works as a base document for preparation of Annual Credi Plan for 2026-27. He said that Farmers Producers Organizations can act as a solution for the impediment in farm credit posed due to fragmented landholdings.
Addressing the stakeholders at the Seminar, K Ramakrishna Rao, IAS, Chief Secretary, Government of Telangana, expressed his pleasure in being associated with the State Credit Seminar, marking his first participation in the event as Chief Secretary. He appreciated the strong convergence between the Telangana Rising Vision Document 2047 and NABARD’s State Focus Paper (SFP), describing it as timely and well aligned.
He explained the Three-Zone Regional Development Framework, noting that the CURE area (within ORR) contributes nearly 60% of the State’s GSDP, while the PURE area drives manufacturing and export-oriented growth, and the RARE area remains critical for agriculture, agri-value chains, farmer incomes and food processing. He termed the explicit recognition of this framework in the SFP as a radical departure from conventional credit planning.
The Chief Secretary stated that Telangana is on a path to achieve a USD 1 trillion economy by 2034 and a USD 3 trillion economy by 2047, requiring integrated and forward-looking planning. He highlighted that while agriculture contributes 16–17% to GSDP, it 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 also pointed to variations in CD ratio across districts and social groups, the need to tap markets outside the State, especially in fisheries and animal husbandry, and the growing climate change risks to agriculture. Emphasizing that the State Focus Paper is a guiding document, 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.
The SFP places significant emphasis 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 (FPOs), modernisation of cooperatives and PACS, promotion of GI‑based clusters, and scaling up climate‑resilient and sustainable agricultural practices.
Senior officials from the Government of Telangana underscored the relevance of the State Focus Paper as a strategic planning instrument and urged banks and financial institutions to actively align their credit strategies with the identified potentials, particularly in investment credit and infrastructure‑led growth. Representatives from RBI and SLBC emphasised the importance of coordinated efforts among stakeholders to translate assessed potential into effective ground‑level credit flow.
The State Credit Seminar provided a common platform for deliberation on policy priorities, operational challenges and actionable strategies, and reaffirmed NABARD’s role as a catalyst and developmental partner in advancing balanced, inclusive and sustainable rural prosperity in Telangana.
Broad Sector-wise Projections & Growth (₹ lakh crore)
