From popular poll pitch to a burden on GDP; crop loan waiver scheme still struggles to find its identity

A popular ballad (Meri Desh Ki Dharti Sona Ugle) from a film released in 1967, Upkaar describes the golden era of agriculture that set the economy on the sail. As per the official data Indian economy is largely dependent on the agricultural sector. As the agro sector still attributes significantly in the GDP of the country. With changing time agricultural sector has evolved but it became an easy prey of the abrupt agricultural policies. 

Governments came and governments ruled once the poster boy of the Indian economy, the agriculture segment was hurled into an uncertain future. 

Farmers became the scapegoat of the nation’s myopic strategies that inadequately backed the agri sector and some of the very crucial agricultural issues that lost their identities in the political manifestos and further hampered the organic growth of the sector. 

Crop loan waiver schemes have created quite a buzz in the political arena and have wooed millions of voters who lived and died by burying the hopes of euphoria in the deep corners of their hearts. 

Chief Economic Advisor Arvind Subramanian has raised his concern over the recent promises made by the several state governments of India saying that this emerging trend of loan waiver could impact the GDP. The GDP might dip by 2 percent if the trend becomes a practice nationwide, reported a business news daily. “We’ve had a spate of announcements recently about agricultural loans being waived off. You know these could cost, if it were to spread, these could cost something like two per cent of GDP, adding to the deficit,” said Arvind while addressing an audience, revealed the news report. 

While speaking at the Peterson Institute, Subramanian mentioned the challenges that might pop up in front of the Central government which is moving towards a fiscal consolidation in the yeas to come. “I think that’s the heart of the political problem and we are still kind of grappling with how to do that,” Subramanian said in the meeting. 

Political analysts believe that crop loan waiver schemes are rolled out for mere political mileage without keeping the banks and other concerned authorities in the loop might push the agricultural sector towards a gloomy future.