Major allocations for agriculture, fisheries, MSMEs and rural infrastructure to drive inclusive growth

In a major boost to Andhra Pradesh’s rural and agricultural economy, the National Bank for Agriculture and Rural Development (NABARD) has projected a comprehensive credit outlay of Rs 5.11 lakh crore for the State for 2026–27, reflecting a robust 20 per cent increase over last year’s Rs 4.24 lakh crore priority sector lending target.

The State Focus Paper for 2026–27 was formally unveiled by Andhra Pradesh Chief Minister N Chandrababu Naidu in Amaravati in the presence of senior government officials, NABARD representatives, and banking leaders, signalling a renewed commitment towards inclusive rural growth and agricultural transformation.

Of the total projected outlay, a substantial Rs 2.55 lakh crore has been earmarked for the agriculture sector, underscoring the State’s continued emphasis on strengthening farm productivity, allied sectors, and rural livelihoods.

The allocation includes Rs 1.66 lakh crore towards crop loans, Rs 34,972 crore for animal husbandry, Rs 8,265 crore for farm mechanisation, Rs 21,098 crore for fisheries, and Rs 11,961 crore for horticulture development.

Significantly, nearly Rs 5,313 crore from the horticulture allocation has been specifically designated for the Rayalaseema region and Prakasam district, aimed at promoting sustainable agriculture and improving farmer incomes in drought-prone areas.

The NABARD credit vision also extends strong support to the industrial ecosystem, with Rs 1.64 lakh crore proposed for Micro, Small and Medium Enterprises (MSMEs), reinforcing the State’s push towards entrepreneurship, employment generation, and decentralised economic development.

Further strengthening the rural infrastructure landscape, the plan provides Rs 9,957 crore for agricultural infrastructure development and Rs 12,687 crore for allied agricultural activities, creating a comprehensive framework for long-term rural resilience and value-chain expansion.

Addressing the gathering after unveiling the credit plan, Chief Minister Chandrababu Naidu urged banks and NABARD officials to proactively support the State Government’s mission to expand the horticulture sector across Andhra Pradesh.

He highlighted the immense potential of horticulture in enhancing farm incomes, driving export opportunities, and ensuring sustainable agricultural diversification, particularly in regions facing climatic and water-related challenges.

The enhanced credit roadmap is expected to serve as a strategic catalyst for Andhra Pradesh’s broader development agenda by improving institutional credit access, accelerating rural infrastructure creation, and fostering balanced economic growth across agriculture and allied sectors.