Under the reforms begun in 1978, China divided its commune lands into small plots and allocated them to individual households for use, not ownership. The households could keep all income from the land after paying the stipulated taxes. Which idea from India’s land reforms of 1950-1990 does this reform best reflect?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Farmers take more interest in raising output when they can keep the gains from higher output.
China’s households got land for use, not ownership, but could keep all income after taxes. This is the idea behind ‘land to the tiller’: farmers work harder when the profit from higher output is theirs.
Option (1) Farmers have an incentive to raise output only after they get legal ownership of the land. — Incorrect. China gave use, not ownership, yet the incentive was there. What matters is keeping the gains.
Option (2) Collective cultivation of land gives farmers more incentive than family plots do. — Incorrect. China moved away from commune land to household plots.
Option (3) Farmers take more interest in raising output when they can keep the gains from higher output. — Correct. Both reforms rest on this incentive.
Option (4) Subsidies are needed to encourage farmers to test a new technology. — Incorrect. This is the case for farm subsidies, not for giving land to households.
This question uses Indian Economy 1950-1990 and Comparative Development Experiences of India and its Neighbours together.
NCERT (2026-27): “Box 2.5: Ownership and Incentives The policy of ‘land to the tiller’ is based on the idea that the cultivators will take more interest — they will have more incentive — in increasing output if they are the owners of the land. This is because ownership of land enables the tiller to make profit from the increased output. …” Chapter 8, Comparative Development Experiences of India and its Neighbours - China: “The present day fast industrial growth in China can be traced back to the reforms introduced in 1978. China introduced reforms in phases. In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. In agriculture, for instance, commune lands were divided into small plots, which were allocated (for use not ownership) to individual households. They were allowed to keep all income from the land after paying stipulated taxes. …” |