Indian agriculture is backward, despite the fact that it is of significant importance in the Indian economy.The main features of Indian agriculture are:

1. Agricultural output depends largely on rainfall and is affected by natural calamities like flood, drought, storm, etc.
2. The historical, social and cultural background of state affects agricultural output.
3. Over three-fourth of landholdings are of small size. Thus, agriculture is a source of livelihood for poor farmers.
4. Farming is a way of life rather than a commercial activity. Thus, production is mainly for self-consumption.
5. There is little use of machinery.

The loan-waiver policy has been implemented by the central, as well as, State Governments to waive-off the outstanding debt dues of the farmers in case of crop failure due to drought, excessive rainfall or any other natural calamity. This policy aims to ease off the burden of poor farmers in face of natural calamity. The value highlighted by the government is "Care and concern for the poor farmers of the country."