Here is Question No. 61 a part of our series on UPSC Prelims 2020.
Q61. In India, which of the following can be considered as public investment in agriculture?
- Fixing Minimum Support Price for agricultural produce of all crops.
- Computerization of Primary Agricultural Credit Societies.
- Social Capital Development.
- Free Electricity supply to farmers.
- Waiver of agricultural loans by the banking system.
- Setting up of cold storage facilities by the government.
Select the correct answer using the code given below:
(a) 1, 2 and 5 only
(b) 1, 3, 4 and 5 only
(c) 2, 3 and 6 only
(d) 1, 2 ,3, 4, 5 and 6
Answer: C
- Public investment is the investment made by the government in sectors and assets that are expected to provide facilities to the general public.
- Statement 1 is not correct: Fixing the MSP for agricultural produce of all crops does not add to the national capital stock or lead to higher productivity.
- Statements 1 and 6 are correct: Computerization of Primary Agricultural Credit Societies will enhance productivity in the agricultural sector, as there will be easy and timely access of credit. Similar will be the impact of setting up cold storage facilities.
- Statement 3 is correct: Building social capital for smallholders can also positively impact the adoption of new technologies such as the use of improved seeds, soil and water conservation practices, and agroforestry.
- Statement 4 is not correct: Free electricity to farmers have, apart from financial stress on the state resulted in excessive use of water, encouragement of installation of more pump sets and depleting groundwater table.
- Statement 5 is not correct: Waiver of agricultural loans is not an investment as it affects the health of the banking sector.
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