Borrowed Burdens: Investigating the Socio-Economic Consequences of Indebtedness on Indian Farming Communities

Abstract: This paper aimed to analyze the impact of indebtedness on socio-economic status, and income on the rampantly growing degree of indebtedness in the rural farmers of Rajasthan. Utilizing data from the 77th Round of NSSO with a sample of 7,345 households, logistic regression analysis explores the impact of variables like age, gender, household type, household size, and income on farmers' debt levels. Gender is a significant predictor and has a considerable influence over indebtedness, males trumped females for a higher magnitude of debt. Household size and income are substantial influential factors impacting indebtedness. Age and household type had a less consistent influence. The study highlights the need for government and policymakers to introduce comprehensive debt relief measures, improved access to institutional credit, and targeted social welfare programs for indebted farming communities. This could include initiatives such as subsidized education programs, affordable healthcare schemes, or livelihood diversification programs for indebted farmers. The study investigates the farmers of Rajasthan, a geospatial context that has not been investigated in the literature, the study goes beyond just causes by examining the impact of debt on farmers' socio-economic status. Regional variations are addressed providing detailed insights for the policymakers. Keywords: Indebtedness, Farmers, Rajasthan, Agriculture, Income, Household size