Farm loan waiver: Designing lasting solutions, says Urjit Patel

India's agrarian economy is the source of around 15 per cent of GDP

In the recent period, farm loan waivers have engaged intense attention. On the one hand, there is a gamut of issues that have intensified the anguish of our farmers. In this context, farm loan waivers have brought forward the urgency of designing lasting solutions to the structural malaise that affects Indian agriculture. On the other, there are concerns about the macroeconomic and financial implications, how long they will persist in impacting the economy, the possible distortions that they could confront public policies with, and the ultimate incidence of the financial burden.

Let me try to eclectically address both sides of