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Consider the following statements about the Reforms introduced in Indian Economy post – 1991.
1. Reforms have not been able to benefit agriculture, where the growth rate has been decelerating
2. The removal of fertiliser subsidy has led to decrease in the cost of production, which has severely affected the small and marginal farmers
3. There has been a shift from production for the domestic market towards production for the export market focusing on cash crops
Which of the statements is/are correct?
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    All of them
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements about the Reforms introduced in Ind...
  • Reforms in Agriculture: Reforms have not been able to benefit agriculture, where the growth rate has been decelerating.
  • Public investment in the agriculture sector especially in infrastructure, which includes irrigation, power, roads, market linkages and research and extension (which played a crucial role in the Green Revolution), has fallen in the reform period.
  • Further, the removal of fertiliser subsidy has led to increase in the cost of production, which has severely affected the small and marginal farmers.
  • Moreover, because of export- oriented policy strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on cash crops in lieu of production of food grains. This puts pressure on prices of food grains.
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Community Answer
Consider the following statements about the Reforms introduced in Ind...
Reforms introduced in the Indian Economy post-1991 have had a significant impact on various sectors, including agriculture. Let's analyze each statement to determine their correctness:

1. Reforms have not been able to benefit agriculture, where the growth rate has been decelerating.

The first statement is correct. Despite the reforms, the growth rate of agriculture has been decelerating in recent years. This can be attributed to various factors such as lack of investment in rural infrastructure, inadequate access to credit, and unpredictable weather conditions. While the overall economy has witnessed growth, the agriculture sector has not been able to keep pace.

2. The removal of fertilizer subsidy has led to a decrease in the cost of production, which has severely affected the small and marginal farmers.

The second statement is incorrect. The removal of fertilizer subsidy has actually increased the cost of production for small and marginal farmers. Fertilizers are a crucial input for agriculture, and the removal of subsidies has led to an increase in their prices. This has adversely affected the farmers, especially those with limited resources, as they find it difficult to afford the increased costs.

3. There has been a shift from production for the domestic market towards production for the export market, focusing on cash crops.

The third statement is correct. The reforms introduced in the Indian economy post-1991 have led to a shift in agricultural production from the domestic market to the export market, with a focus on cash crops. The government has encouraged farmers to diversify their crops and produce high-value cash crops like fruits, vegetables, spices, and flowers for export. This shift has been driven by the aim of boosting agricultural exports and earning foreign exchange.

In summary, statement 1 and 3 are correct, while statement 2 is incorrect. The reforms have not been able to benefit agriculture, as its growth rate has been decelerating. Additionally, the removal of fertilizer subsidy has increased the cost of production for small and marginal farmers. However, there has been a shift towards production for the export market, focusing on cash crops.
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Consider the following statements about the Reforms introduced in Indian Economy post – 1991.1. Reforms have not been able to benefit agriculture, where the growth rate has been decelerating2. The removal of fertiliser subsidy has led to decrease in the cost of production, which has severely affected the small and marginal farmers3. There has been a shift from production for the domestic market towards production for the export market focusing on cash cropsWhich of the statements is/are correct?a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements about the Reforms introduced in Indian Economy post – 1991.1. Reforms have not been able to benefit agriculture, where the growth rate has been decelerating2. The removal of fertiliser subsidy has led to decrease in the cost of production, which has severely affected the small and marginal farmers3. There has been a shift from production for the domestic market towards production for the export market focusing on cash cropsWhich of the statements is/are correct?a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about the Reforms introduced in Indian Economy post – 1991.1. Reforms have not been able to benefit agriculture, where the growth rate has been decelerating2. The removal of fertiliser subsidy has led to decrease in the cost of production, which has severely affected the small and marginal farmers3. There has been a shift from production for the domestic market towards production for the export market focusing on cash cropsWhich of the statements is/are correct?a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about the Reforms introduced in Indian Economy post – 1991.1. Reforms have not been able to benefit agriculture, where the growth rate has been decelerating2. The removal of fertiliser subsidy has led to decrease in the cost of production, which has severely affected the small and marginal farmers3. There has been a shift from production for the domestic market towards production for the export market focusing on cash cropsWhich of the statements is/are correct?a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'C'. Can you explain this answer?.
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