Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Rural Development

Question:

What was the major reason for decline in growth rate of agriculture sector after the reforms of 1991?

Options:

Decline in public investment in agriculture sector

Decline in the interest of labourers in working in this sector

Both 1 and 2

None of the above

Correct Answer:

Decline in public investment in agriculture sector

Explanation:

The share of agriculture sector’s contribution to GDP was on a decline, the population dependent on this sector did not show any significant change. Further, after the initiation of reforms, the growth rate of agriculture sector decelerated to about 3 per cent. Scholars identify decline in public investment since 1991 as the major reason for this.