1). In my view, a priority sector should be an area of market failure.
2). Priority sectors include agriculture, small scale industries, housing, exports, etc.
3). Economics say that a market has failed when the market does not provide efficient outcomes for society.
4). The government of India directs substantial bank credit to what it deems are 'priority sectors' for the Indian economy.
5). It is not clear how sectors get identified for the priority tag, as there is no clearly articulated logic.
6). Markets fail for a variety of reasons.
Error(s) Found !!!