Transforming Credit Planning in Nagaland: A New Approach for Empowering Rural Livelihoods

The Nagaland government urges a shift from compliance-focused to outcome-driven credit planning to boost rural livelihoods. Customized credit products and improved data management are highlighted as essential. NABARD's enhanced district-level credit plans are crucial, and cross-departmental coordination is needed for effective implementation.

The Nagaland government has emphasized the need to transform credit planning from a mere compliance routine into an outcome-driven mechanism that can directly enhance rural livelihoods. During a State Credit Seminar for 2026-27, Finance Department Additional Secretary Imtimenla pointed out that while agriculture remains central to Nagaland's economy, issues like low institutional investment and fragmented landholdings persist.

NABARD's General Manager, P Bulte, announced the preparation of district-specific Potential-Linked Credit Plans (PLPs) for Nagaland, a first for the newly created districts as part of a wider initiative to promote entrepreneurship and innovation. Bulte stressed the importance of joint responsibility among NABARD, line departments, and banks in crafting the State Focus Paper, with digital data systems like AgriStack identified as pivotal for targeted credit delivery.

Additionally, the seminar highlighted governmental efforts like the Chief Minister's Micro Finance Initiative, designed to expand formal credit access, while addressing challenges such as data gaps and landholding complexities. Increased coordination between government programs and banking support was deemed essential for engaging youth in cooperative and entrepreneurial ventures.

(With inputs from agencies.)