Nishant Vats on the Impact of Income Guarantee on Farm Incomes in India
Ideas of India
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How Do You Get the Additional 65 Rupee Effect?
A hundred rupee increase in income to the farmer means a 65 rupee bump right in credit. So how does this exactly work is it because of the increase in income the farmers are now more credit worthy right? It's sort of like you know the it's a supply side response right to the increased income or is it because the farmers areNow more willing to take risk in the credit market. They're more willing to borrow because now they have this guaranteed stream of income which would be like sort of a demand side response if we had to make this distinction.
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