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CBSE 2020 Class 12 Economics Outside Delhi Set 3
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Question : 6 of 7
Marks:
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"Some economists believe that the economic reforms have adversely affected the agriculture sector in India." Do you agree with the given statement? Justify your answer with valid reason.
Solution:
Economic Reform : "Yes" we agree with the given statement. (i) Reduction of public investment : Public investment in agriculture sector, especially infrastructure which includes roads, power irrigation has been reduced in the reform period. (ii) Removal of subsidy : Removal of fertilizer subsidy has increased the cost of production. (iii) Reduction in import duties : After commitment of WTO a number of policy has changed like reduction of import duties on agriculture products. (iv) Shift towards cash crops: Due to export-oriented policy in agriculture the production shifted from food grains to cash crops for the export market.
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