Former RBI Governor Raghuram Rajan opined Farm Loan Waivers would actually benefit the best connected rather than the poorest. 'Beneficiaries of Farm Loan Waiver will be those who are best connected rather than the most poor. It eventually leads to so many problems for the economy of the state,' he says.
At the same time, Rajan feels Indians Farmers deserve no less. He stresses the need for create an environment where Farmers can be a vibrant force. He also maintains that more resources are needed where farm loan waivers are the best option.
These days, Almost all the Political Parties have been promising Farm Loan Waiver to lure the voters at the time of elections. Many Parties including BJP, Congress, TRS and TDP have won elections with this poll promise. In fact, This is one of the major factors that contributed to the victory of Congress in Madhya Pradesh, Rajasthan and Chhattisgarh. The Ex-RBI Governor had earlier wrote a letter to Election Commission against populist schemes like Farm Loan Waiver. He sought EC to bring guidelines to prevent parties from making promises which hurt the economy.
Raghuram Rajan told, 'Indian Economy has slowed down in the past 5 years and unemployment kept growing. Close to 250 Candidates have been competing for each job vacancy in the Indian Railways and that reflects the seriousness of the problem'.