Farm loan waivers are like painkillers for a broken leg – quick relief but no real fix. They burden governments, don’t change bad borrowing habits, and miss many farmers. Critically analyze.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

5. Farm loan waivers are like painkillers for a broken leg – quick relief but no real fix. They burden governments, don’t change bad borrowing habits, and miss many farmers. Critically analyze. (250 words)

Difficulty level: Tough

Reference: The Hindu

Why the question: The article discusses the growing threat of cybercrime in the modern world. Key Demand of the question: To write about how the loan waivers are just only a short term fix but vicious cycle of debt remains unbroken. Directive word: Directive Word: Critically analyze – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a balanced judgment on the topic. Structure of the answer: Introduction: Write about the populist practices of announcement of loan waivers in poll bound states. Body: First, highlight why such unconditional loan waivers are problematic as they cause a moral hazard – lead to debt overhang, Lead to vicious cycle of debt that sometimes characterizes farm households in India. Next, write the other measures needed instead of loan waivers – infrastructure improvements, better market access, and income-boosting practices. Debt restructuring and crop insurance can also provide safety nets for farmers. Conclusion: Conclude by writing a way forward.

Why the question:

The article discusses the growing threat of cybercrime in the modern world.

Key Demand of the question:

To write about how the loan waivers are just only a short term fix but vicious cycle of debt remains unbroken.

Directive word:

Directive Word:

Critically analyze – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a balanced judgment on the topic.

Structure of the answer:

Introduction:

Write about the populist practices of announcement of loan waivers in poll bound states.

First, highlight why such unconditional loan waivers are problematic as they cause a moral hazard – lead to debt overhang, Lead to vicious cycle of debt that sometimes characterizes farm households in India.

Next, write the other measures needed instead of loan waivers – infrastructure improvements, better market access, and income-boosting practices. Debt restructuring and crop insurance can also provide safety nets for farmers.

Conclusion:

Conclude by writing a way forward.