Politically, a farm loan waiver makes eminent sense with the Lok Sabha elections not too far away. Economically, though, it is difficult to make a case for loan waivers—simply because there is no case to be made. Mint’s house view is that loan waivers are a bad idea. Politically, it makes eminent sense to announce a farm loan waiver now, in 2017. Loan waivers are great palliatives, but can’t tackle the underlying problems.

Source: Mint April 09, 2017 14:37 UTC