Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Which of the following is NOT a critique of agricultural subsidies in India?

Options:

a substantial amount of fertiliser subsidy also benefits the fertiliser industry

the subsidy largely benefits the farmers in the more prosperous regions

it is a huge burden on the government’s finances

none of the above

Correct Answer:

none of the above

Explanation:

It is argued by some economists that subsidies are meant to benefit the farmers but a substantial amount of fertiliser subsidy also benefits the fertiliser industry; and among farmers, the subsidy largely benefits the farmers in the more prosperous regions. Therefore, it is argued that there is no case for continuing with fertiliser subsidies; it does not benefit the target group and it is a huge burden on the government’s finances.