Identify the odd one out among the following economic measures, taking marketisation as the criterion:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Raising support prices for crops
Option (1) Deregulation of economic controls — Incorrect. Deregulation means relaxing or removing economic controls. It is one of the marketisation steps, so it belongs with the group.
Option (2) Privatisation of industries — Incorrect. Privatisation of industries hands government-owned firms over to private owners. It is also a marketisation step that cuts back the role of the state.
Option (3) Raising support prices for crops — Correct. Support prices are the prices at which the government agrees to buy crops, so raising them is government interference in markets. Liberalisation works against this and reduces or withdraws support prices, so this measure is the odd one out.
Option (4) Removing government controls over wages and prices — Incorrect. Removing controls over wages and prices lets the market set them. It is the third marketisation measure, so it fits the group.
NCERT (2026-27): “Debate on Liberalisation – Market Versus State “… Earlier, Indian agriculture was protected from the world market by support prices and subsidies. Support prices help to ensure a minimum income for farmers because they are the prices at which the government agrees to buy agricultural commodities. Subsidies lower the cost of farming because the government pays part of the price charged for inputs (such as fertilisers or diesel oil). Liberalisation is against this kind of government interference in markets, so support prices and subsidies are reduced or withdrawn. …” |