Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

<p>So far Uttar Pradesh, Karnataka, Maharashtra, Punjab and Tamil Nadu have announced or made promises of farm-loan waivers. However, with major states including Rajasthan and Madhya Pradesh facing legislative assembly elections in 2018 and all-India general elections in 2019, further waivers cannot be ruled out. Our view is that states can ill-afford such magnanimous gestures. Demands for farm loan waivers have emerged at a time when state finances have been deteriorating (Figure 1) and market…</p>

So far Uttar Pradesh, Karnataka, Maharashtra, Punjab and Tamil Nadu have announced or made promises of farm-loan waivers. However, with major states including Rajasthan and Madhya Pradesh facing legislative assembly elections in 2018 and all-India general elections in 2019, further waivers cannot be ruled out. Our view is that states can ill-afford such magnanimous gestures. Demands for farm loan waivers have emerged at a time when state finances have been deteriorating (Figure 1) and market…

India - Farm Loan Waivers