About 70% of Nagaland’s working population is employed in agriculture, making it mostly an agrarian state. The industry faces several obstacles, including challenging terrain, disjointed land-holding infrastructure, marketing bottlenecks, a high rate of urban migration, and low investment. This caused the State to import a lot of food items, especially meat, to feed its people. However, Nagaland has a lot of potential in terms of the range of soil types and climates it provides.

In Nagaland, a number of government programs are actively enhancing rural finance, with NABARD’s assistance and the Chief Minister’s Micro Finance Initiative (CMMFI) serving as major catalysts. While NABARD offers vital refinance to Rural Financial Institutions to serve the farming sector, the CMMFI concentrates on giving people, SHGs, and FPOs access to credit for economic activity. This article is framed to let the readers learn about the Top Government Schemes Boosting Rural Finance in Nagaland.

Top Government Schemes Boosting Rural Finance In Nagaland

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Nagaland is primarily an agrarian state, with about 70% of its working population occupied in agriculture. A high incidence of urban migration, marketing obstacles, challenging terrain, dispersed land-holding infrastructure, and low investment are some of the issues the company faces. To feed its citizens, the State had to import a lot of food, particularly beef.

But when it comes to the variety of soil types and temperatures it offers, Nagaland has a lot of potential. With the help of NABARD and the Chief Minister’s Micro Finance Initiative (CMMFI), several government initiatives in Nagaland are actively improving rural finance. While the CMMFI focuses on providing individuals, SHGs, and FPOs with access to credit for economic activity, NABARD provides essential refinance to Rural Financial Institutions to support the farming industry.

Which Government Schemes are Boosting Rural Finance In Nagaland?

Chief Minister’s Micro Finance Initiative (CMMFI)

This scheme provides interest subvention or subsidy for credit extended by banks to new borrowers, including Self-Help Groups, Farmer Producer Organisations, and individuals for identified activities. 10% of the funding comes from beneficiaries, 60% comes from bank financing, and 30% comes from back-end subsidies provided by the Nagaland government.

• Objective: To promote investment in agriculture and allied sectors, improve agri-marketing networks and infrastructure, and encourage private enterprise.

• Eligible Activities: Construction of circular eco-hatchery, rejuvenation of animal husbandry, integrated farming system, zero energy cold storage, solar cold storage, procurement of transport vehicles for agricultural products, post-harvest processing units, and microfinance schemes for micro-enterprises.

Nagaland State Rural Livelihood Mission (NSRLM)

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This mission aims to create sustainable livelihood opportunities, build capacities of the rural poor, and empower women through self-help groups.

• Objective: To reduce poverty by enabling poor households to support themselves through grants or loans.

• Strategies: Promoting community-based organisations, providing skill training and capacity building, improving access to credit facilities, promoting women’s empowerment, and creating market linkages.

XV Finance Commission Grants to Rural Local Bodies (VDBs):

This scheme provides grants to rural local bodies for basic services such as sanitation, drinking water supply, and solid waste management.

• Objective: To provide infrastructure and essential services to raise the standard of living in rural areas.

• Components: Basic Grants (untied fund) and Tied Grants (for specific services like sanitation and drinking water supply).

Prime Minister’s Employment Generation Programme (PMEGP): 

This scheme provides financial assistance to beneficiaries for setting up micro-enterprises.

• Objective: To generate employment opportunities in rural areas.

MGNREGA:

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This scheme provides guaranteed wage employment to rural households.

• Objective: To enhance livelihood security of households in rural areas by providing at least 100 days of guaranteed wage employment in a financial year

Nagaland State Food Processing and Allied Industries Development

This scheme promotes food processing industries and provides support for infrastructure development.

• Objective: The goal is to decrease poverty, increase farmers’ incomes, and provide jobs in rural areas.

• Benefits: Financial assistance, training, and marketing support for entrepreneurs.

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