Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

Which of the following statement (s) is/are correct in the context of impact of Economic Reforms on agricultural sector in India?

Statement 1: There has been pressure on prices of food grains in our country in recent times.

Statement 2: Because of exportoriented policy strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on food crops in lieu of production of cash crops.

Options:

Only Statement 1 is correct.

Only Statement 2 is correct.

Both statements are correct.

None of the given statement is correct.

Correct Answer:

Only Statement 1 is correct.

Explanation:

In recent times, because of exportoriented policy strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on cash crops in lieu of production of food grains. This puts pressure on prices of food grains.