Opinion | The equivalence of farm loan waivers and corporate NPAs
The problem of the spendthrift farmer and that of the flagrant corporate firm are two sides of the same coin
A recent newspaper headline read: “Farmer Bijay Lallya arrested at IGI Airport trying to flee the country over non-payment of bank loans of ₹ 5 lakh." As you might have guessed, this headline is made up. An instinctive reaction would be to ask—“How can farm loan waivers have anything in common with corporates’ non-performing assets (NPAs)? Isn’t one decision entirely political and the other entirely commercial?" But first impressions can be deceptive.