Government intervention and economic well-being of farmers

This paper investigates the impact of the PM-Kisan Samman Nidhi scheme, revised in 2020, on the economic well-being of farmers in Karur, Tamil Nadu. The study employs a mixed-method approach, incorporating both quantitative and qualitative data from 50 farmers through structured questionnaires and secondary sources. Key findings indicate a significant increase in farmers' average annual income and investments in agricultural inputs, leading to higher productivity and improved living standards. Despite an observed rise in debt levels, the scheme facilitated greater access to formal credit and insurance. The analysis, supported by subsidy theory, real income effect, microfinance, and Cobb-Douglas production function, underscores the positive influence of PM-Kisan on agricultural productivity and financial resilience among beneficiary farmers. The study concludes with recommendations for addressing limitations and future research directions to enhance policy effectiveness.