Rural Indebtedness in India and its Consequences

Abstract

paper has focused on extent of rural indebtedness. Indebtedness has been increased over the decadesamong the most of the states except Gujarat, Haryana, Madhya Pradesh, Chhattisgarh and Orissa, either because of huge loans ordue to low income which is not sufficient enough to pay off the Indebtedness is found to be high among cultivators group when compared to that of non-cultivators. Thus, it became a serious problem of Indian farmers. This situation gives proof of a well known saying in the country The Indian Farmer is born in debt, lives in debt and dies in debt. main causes of indebtedness are poverty, ancestral debt, illiteracy and ignorance. harmful consequences of indebtedness are low standard of living, health problem, low productivity, suicides etc. For this problem, government should take suitable remedial measures like settlement of old debt, reduction of dependence on local money lenders, control of new loans etc.