Evaluating the Impact of the Kishan Credit Card (KCC) Scheme on Sustainable Development Goal 1 (No Poverty) in India: A Multivariate Statistical Inquiry

Abstract

An initiative by the Government of India, Kishan Credit Card (KCC) Scheme, is targeted towards alleviating rural poverty and filling the credit gap in smallholder farmers' sectors. This research examines how it plays a role in contributing towards the SDG 1-No Poverty using mixed methods, combining primary survey data collected from 500 farmers across five states in India with the existing data collected from governmental and financial institutions. The study employs multivariate statistical methods, such as factor analysis, ANOVA, and paired t-tests, which show that there are positive effects of the KCC scheme on farmers' income (p < 0. 01) and on the reduction of informal credit usage (factor loading=0. 79), which are the core ingredients for this financial inclusion. Yet, structural constraints include bureaucratic red-tape and low awareness. These findings offer empirical evidence for policymakers to enable the redesign of the implementation strategy and boost the impact of the scheme on poverty reduction.