As per the following:http://www.thehindu.com/opinion/lead/cause-for-caution-not-gloom/article19519760.ece
"fiscal tightening by States due to Ujwal DISCOM Assurance Yojana (UDAY), farm loan waivers, declining profitability of some key sectors like power and telecom, the shadow of unresolved twin balance sheet problems and transitional issues of the GST are contributory to deflationary pressures."
- Farm loan waivers mean more money in the economy, so there should be inflationary trend. It is generally said that farm loan waivers are unhealthy for the economy as they lead to inflation. But here it is written that they contribute to deflationary pressures.
- Also, through UDAY, DISCOMs can convert their debt into state bonds. That means DISCOMs will sell bonds, in return for which they will get money. Means more money in the economy causing inflation. But here, the opposite is written.