Public Investment in Agriculture
Question
In India, which of the following can be considered as public investment in agriculture? Select the correct answer using the code given below:
- 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
Options
1, 2 and 5 only
1, 3, 4 and 5 only
2, 3 and 6 only
1, 2, 3, 4, 5 and 6
Explanation
Investment creates long-term assets and improves future productive capacity. Computerization of PACS (2), social capital development (3), and setting up cold storage facilities (6) build institutional and physical infrastructure, counting as capital investments. Conversely, fixing MSPs (1), providing free electricity (4), and waiving loans (5) are current revenue expenditures classified as subsidies or transfer payments, as they do not create durable productive assets. > One-line conceptual takeaway: Capital investment creates durable productive assets, whereas subsidies and loan waivers are short-term revenue expenditures. Answer: (c).
Question details
Year
2020
Paper
GS Paper 1
Question
Q61
Subject
Economy
Sub-topic
Economic & Agricultural Geography
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
Dalwai Committee Report / Economic Survey
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