Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:
What is the purpose of subsidies in agriculture in India?
Options:
To increase government revenue.
To benefit the fertiliser industry.
To encourage adoption of new technology.
None of the above
Correct Answer:
To encourage adoption of new technology.
Explanation:
The subsidies are necessary to provide an incentive for farmers, especially small farmers, to adopt new technology in agriculture. Subsidies help to reduce the risks associated with testing and implementing new technologies, thereby encouraging farmers to adopt them.