"Many economists believe that the economic reforms process of 1991 had adversely affected the agricultural sector." Do you agree with the given statement ? Quote valid arguments in favour of your answer. (i) Explain any two shortfalls of the industrial policy under the British rule. (ii) Quote the four goals of the five year plans process of India.

Question

Accepted Answer

I **agree** that the 1991 economic reforms adversely affected the agricultural sector. Valid arguments:

1. **Reduction in Public Investment:** Public investment in agriculture, especially in irrigation, power, roads, and research, was reduced. This affected agricultural infrastructure.

2. **Removal of Fertilizer Subsidy:** Removal of subsidy increased cost of production, adversely affecting small and marginal farmers.

3. **Liberalisation of Import Duties:** Reduction in import duties on agricultural products exposed Indian farmers to international competition.

4. **Removal of Minimum Support Price:** This left farmers vulnerable to market fluctuations.

5. **Shift to Cash Crops:** Export-oriented policies shifted production from food grains to cash crops, leading to rise in food grain prices.

6. **Neglect of Agriculture:** The new policy focused more on industry, trade, and services, neglecting agriculture.