Given below are two statements:
Statement I: The Green Revolution led to the diversification of the portfolio of rural credit towards production-oriented lending.
Statement II: To spread the Green Revolution, the government withdrew low-interest loans and fertiliser subsidies from small farmers.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Statement I is true but Statement II is false.
Statement I: The Green Revolution led to the diversification of the portfolio of rural credit towards production-oriented lending. — True. Credit moved towards production.
Statement II: To spread the Green Revolution, the government withdrew low-interest loans and fertiliser subsidies from small farmers. — False. The government gave small farmers loans at low interest and subsidised fertilisers, so they too could buy inputs.
This question uses Rural Development and Indian Economy 1950-1990 together.
NCERT (2026-27): “5.3 Credit and Marketing in Rural Areas … The Green Revolution was a harbinger of major changes in the credit system as it led to the diversification of the portfolio of rural credit towards production-oriented lending. …” Indian Economy 1950-1990: “… The government provided loans at a low interest rate to small farmers and subsidised fertilisers so that small farmers could also have access to the needed inputs. Since the small farmers could obtain the required inputs, the output on small farms equalled the output on large farms in the course of time. …” |