Farm Loan Waiver Schemes in India: A Decadal Review (2016-2025) with Reference to Karnataka
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Abstract
Farm loan waiver schemes have emerged as a significant policy response to agrarian distress in India. Over the past decade (2016-2025), several empirical and policy-oriented studies have examined their impact on farmer welfare, agricultural credit systems, and fiscal sustainability. This review paper synthesizes existing literature to evaluate the effectiveness of loan waiver schemes, with particular reference to Karnataka. The findings indicate that while loan waivers provide short-term financial relief to farmers, they fail to address structural issues such as low productivity, price instability, and dependence on informal credit. The review also highlights concerns regarding moral hazard, fiscal burden, and exclusion of vulnerable farmers. The paper concludes that sustainable agricultural development requires integrated policy measures beyond loan waivers.
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References
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