Summary: A review of the historical background of agricultural reforms in India reveals the implementation of various schemes to address the indebtedness of farmers, notably the Deccan Agriculturists’ Relief Act of 1879. Criticisms arose regarding the effectiveness of such legislation, leading to discussions on alternative solutions. The establishment of Agricultural Banks in Egypt, initiated by Sir Elwin Palmer and successful in providing loans to farmers, serves as a model for India’s agricultural sector. Advocates, including Sir James Caird and Sir William Wedderburn, proposed innovative approaches, such as implementing freehold tenure for peasants and encouraging private enterprise to establish agricultural banks. Calls for Indian capitalists to take the lead in developing such institutions underscore a need for state support through guarantees and regulations, mirroring successful practices observed in Egypt. Despite debates over land ownership and interest rates, the emphasis remains on providing sustainable financial solutions to alleviate farmer indebtedness and promote agricultural development in India.