Agriculture is one of the most prominent sectors of India’s economy. Agriculture sector is providing employment to more than 50% of India’s workforce and more than 60% of India's population is directly or indirectly dependent on it. Institutional credit always plays a crucial role in the economic development of any sector. In this study, we have analyzed the role of institutional credit on the economic growth of the agriculture sector of India. Along with institutional credit, role of area cultivated, consumption of fertilizers, and production of agriculture in economic growth of the agriculture sector were studied. For analyzing the data, correlation matrix, Philips – Perron test, and Cobb – Douglas function were applied. The results revealed that institutional credit and area cultivated had a positive and significant impact on the growth of the agriculture sector of India. The study further suggested changes in government policies to promote the agriculture sector as a business venture, and institutional credit to the agriculture sector should also be sanctioned by private banks other than public sector banks.

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