Rural indebtedness of Modern India
Answers
Answer:
Indebtedness means an obligation to pay money to another party. In rural India the poor farmers and wage labours etc. when are unable to repay a loan and accumulate it, gives rise to the problem of rural indebtedness. Rural indebtedness is an indicator of the weak financial infrastructure of our country, which includes inability of our economic system to reach to the needy farmers, landless people in the villages and the agricultural wage labourers.
The farmers borrow loan for either agricultural operations or some other uses like supporting the family in the lean season or to buy equipments. Due to lower income or wasteful expenditures when the farmers are unable to pay the loans they are unable to pay off their debts and thus accumulate the debt as well as pending interest on the amount. The weaker ‘financial inclusion’ in India has given the local money lenders an opportunity to exploit such farmers from generations to generations.
Royal Commission on Agriculture, 1928
The royal commission on Agriculture in India, 1928 was created in British India to exmine and report on the conditions of the farmers. It expressed:
“The Indian peasant is born in debt, lives in debt and bequeaths the indebtedness to his successors. “
Explanation:
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