Sectoral Trends and Patterns of Priority Sector Lending (PSL)  in India

Atanu Mitra; Sebak Kumar Jana

doi:10.55524/ijirem.2026.13.3.8

Abstract

The paper draws on secondary data from the 2025–26 Economic Survey to investigate the trends and patterns of India’s Priority Sector Lending (PSL) over the ten-year period spanning 2015–16 to 2024–25. The study finds that the total scale of PSL rose from 26.52 trillion rupees to 78.76 trillion rupees, nearly tripling. Agriculture, micro, small, and medium enterprises (MSMEs), and vulnerable groups are the core beneficiaries. The share of loans extended to vulnerable groups has increased significantly, while the shares of housing and education loans have declined, and lending for renewable energy has grown gradually. PSL has become increasingly diversified, and remains a core tool for driving India’s inclusive and sustainable economic development.

Keywords

Priority Sector Lending (PSL), Agriculture Credit, Micro and Small Enterprises, Weaker Sections, Financial Inclusion, Directed Credit, Gross Bank Credit, India.

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Cites this article as

A. Mitra, S. K. Jana, "Sectoral Trends and Patterns of Priority Sector Lending (PSL) in India", International Journal of Innovative Research in Engineering and Management (IJIREM), Vol-13, Issue-3, Page No-62-66, 2026. Available from: https://doi.org/10.55524/ijirem.2026.13.3.8