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Question
Elaborate how the economic reforms process of India impacted the agricultural sector.
Short Answer
Solution
- Economic changes in India have conflicting effects on the agriculture sector. Liberalization eliminated agricultural subsidies and reduced government support, negatively impacting small and marginal farmers.
- With the removal of price controls and the opening of agricultural markets, farmers faced increased price instability and competition.
- Reforms encouraged investments in infrastructure, technology, and irrigation, increasing farmers' production and market access.
- Economic reforms in agriculture have greatly benefited large-scale commercial farmers and agri-businesses, leaving smallholders with less gain.
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