UPSC Prelims 2020 · Question 71 of 100
UPSC Prelims 2020 question on Public Investment in Agriculture
- ExamUPSC CSE
- Year2020
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicAgriculture Economy
- DifficultyMedium
- TypeStatement
In India, which of the following can be considered as public investment in agriculture?
1. Fixing Minimum Support Price for agricultural produce of all crops.
2. Computerization of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans by the banking system
6. Setting up of cold storage facilities by the governments.
Select the correct answer using the code given below:
Show answer
Answer: C. 2, 3 and 6 only
Verdict
Correct options: 2, 3 and 6 → Option (c).
Analysis
Public Investment here refers to the creation of either physical infrastructure or intangible capital.
Statement by statement
Statement 1 – NOT public investment: Fixing Minimum Support Price (MSP) is a price support mechanism, not infrastructure creation. There is scope for elimination here. Hence option 1 is not correct.
Statement 2 – CORRECT: Computerization of Primary Agricultural Credit Societies is an investment in infrastructure (intangible capital/digital infrastructure). Hence option 2 is correct.
Statement 3 – CORRECT: Social Capital development (like building farmers' cooperatives, institutions etc.) is a form of social capital investment. Hence option 3 is correct.
Statement 4 – NOT public investment: Free electricity supply to farmers is a subsidy, not investment in physical or intangible capital. Hence option 4 is not correct.
Statement 5 – NOT public investment: Waiver of agricultural loans by the banking system is a subsidy/loan waiver, not investment. Hence option 5 is not correct.
Statement 6 – CORRECT: Setting up of cold storage facilities by the governments is creation of physical infrastructure — direct public investment. Hence option 6 is correct.