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Abstruct:- Agriculture is the main stay in Indian Economy in terms of Employment generation but this strategic economic activity suffers the problems of acute shortage of capital formation . After 1st phase of Bank Nationalisation in 1969 there was an attempt of the Govt. to extend institutional credit at the grass root level. There was considerable extension of formal credit after that but a new game started i.e. the political game of weaving. Because the farmers are considered as vote bank dividend in every election . Loan weaving is really essential from economics or is it a political compulsion ?

Key words:- Agri-GDP; Food inflation ; Cash crops ; CPI ; Structural shift

"Political Economy of Waiving of Loans: Will it help India’s Farms Prosperity", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 11, page no.125-130, November-2018, Available :http://www.jetir.org/papers/JETIR1811619.pdf

"Political Economy of Waiving of Loans: Will it help India’s Farms Prosperity", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 11, page no. pp125-130, November-2018, Available at : http://www.jetir.org/papers/JETIR1811619.pdf