Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

Which of the following statement is incorrect in the context of the agricultural sector in India in post 1991 reform period?

Options:

Since 1991, public investment in agriculture sector especially in infrastructure, which includes irrigation, power, roads, market linkages and research and extension (which played a crucial role in the Green Revolution), has fallen.

The partial removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and large farmers alike.

Indian farmers are now facing increased international competition.

All of the above

Correct Answer:

The partial removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and large farmers alike.

Explanation:

Since 1991, public investment in agriculture sector especially in infrastructure, which includes irrigation, power, roads, market linkages and research and extension (which played a crucial role in the Green Revolution), has fallen. Further, the partial removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and marginal farmers. This sector has been experiencing a number of policy changes such as reduction in import duties on agricultural products, low minimum support price and lifting of quantitative restrictions on the imports of agricultural products. These have adversely affected Indian farmers as they now have to face increased international competition.