With corporate buyers around, farmers may be better able to raise loans from banks to invest in land development, irrigation, farm equipment, seeds, fertilizer, storage and processing and transportation. Banks will also find it conducive to push lending in agriculture sector as involvement of retail chains will infuse confidence in them about the economic viability of the projects.

Retailing, one of the largest sectors in the global economy, is going through a transition phase not only in India but the world over. The retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast-paced industries with several players entering the market. It is gradually inching its way toward becoming the next boom industry.

The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This is slowly giving way to international formats of retailing. This article attempts to review the emerging trends in agricultural finance in the Indian retail sector.

The growth of the retail sector in India has been spectacular during the past few years. In fact, no sector in India has grown at such a speed in such a short period. The major corporate houses in India (e.g., Tata, Birla, Reliance, Bharati, etc.), and the world's greatest retailers (e.g., Wal-Mart, Tesco, Carrefour, etc.), are doing their best to have the headstart in the field and reap the benefits (Refer Box). The Indian retail industry expects investment of over $30 bn over the next five years.

Professional Banker Magazine, Agricultural Finance, Global Economy, Agriculture Sector, Agricultural Finance, Indian Retail Sector, Consumer Buying Behavior, Gross Domestic Products, GDP, Indian economy, Non-Performing Assets, Private Sector Banks.