Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Issues related to farm subsidies.
4) Loan waivers are often argued to vitiate credit culture and stress the budgets of the waiving state or central government. In this context discuss how the recently enacted Insolvency and Bankruptcy Code (IBC) proves to be method of providing relief for the distressed Indian farmer?(250 words)
Why this question:
The article provides for a detailed analysis of How the recently enacted bankruptcy code can help fix India’s agrarian crisis and provides for a fresh start’ process in a systematic manner of waiving debts overseen by a judicial body.
Key demand of the question:
The main demand of the question is to explain the importance of private participants in the Indian space industry. What are the Challenges, Opportunities, and Strategic Concerns associated with it.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Narrate as to how historically, farm loan waivers have been used as a quick-fix solution to agrarian distress in India.
In such questions it is important to ensure one doesn’t ignore the statement , you are expected to first justify the statement – “Loan waivers are often argued to vitiate credit culture and stress the budgets of the waiving state or central government” with suitable examples or illustrations and then move on discuss the role of IBC as a sure method of providing relief for the distressed Indian farmer.
Conclude that the problem cannot be fixed with a solution that is one size fits all but rather with a multi – integrated approach.