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Elaborate how the economic reforms process of India impacted the agricultural sector. - Economics

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Question

Elaborate how the economic reforms process of India impacted the agricultural sector. 

Short Answer

Solution

  1. 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.
  2. With the removal of price controls and the opening of agricultural markets, farmers faced increased price instability and competition.
  3. Reforms encouraged investments in infrastructure, technology, and irrigation, increasing farmers' production and market access. 
  4. Economic reforms in agriculture have greatly benefited large-scale commercial farmers and agri-businesses, leaving smallholders with less gain.
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2023-2024 (February) Outside Delhi Set - 2
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