Agriculture sector appears to be adversely affected by the reform process. Why?
The economic reforms of 1991 did not benefit the agricultural sector significantly. The following are the reasons that explain the adverse effects of the economic reforms on India's agriculture sector:
1. Reduction of Public Investment: There has been a drastic decrease in the volume of public investment in the agricultural sector. There has been an acute cutback from the Indian government to provide sufficient irrigation facilities, electricity, information system, market linkages and roads. Moreover, investment in agricultural research and development was not as extensive as it was during green revolution phase
2. Removal of Subsidies: Removal of subsidies on fertilisers pushed up the cost of production of agriculture. This made farming more expensive, thereby, adversely affecting the poor and marginal farmers.
3. Liberalisation and Reduction in Import Duties on Agricultural Products: Due to adherence to the WTO commitments, Indian government reduced import duties on agricultural products that forced the poor and marginal farmers to compete with their foreign counterparts in the international markets. Stiff competition in the international market along with traditional techniques of farming badly affected the poor farmers.
4. Shift towards Cash Crops and Lack of Food Grains: The export oriented production strategies led to the shift of agricultural production from food grains to the production of cash crops like cotton, jute, etc. This led to reduced availability of food grains and, consequently, t lower nutritional values which further reduced their productivity.
5. Inflationary Pressures on Food Grains: The shift towards cash crops production along with the removal of subsidies exerted inflationary pressures on the prices of food grains. This in turn adversely affected the agricultural sector's performance by making the cost of producing food grains more expensive.
How is RBI controlling the commercial banks?
Distinguish between the following
(i) Strategic and Minority sale
(ii) Bilateral and Multi-lateral trade
(iii) Tariff and Non-tariff barriers.
Why were reforms introduced in India?
Those public sector undertakings which are making profits should be privatised. Do you agree with this view? Why?
Do you think outsourcing is good for India? Why are developed countries opposing it?
Why did RBI have to change its role from controller to facilitator of financial sector in India?
Do you think the navaratna policy of the government helps in improving the performance of public sector undertakings in India? How?
What do you understand by devaluation of rupee?
Why are tariffs imposed?
Why has the industrial sector performed poorly in the reform period?
What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?
What are the two major sources of human capital in a country?
What do you mean by rural development? Bring out the key issues in rural development.
Define a plan?
Who is a worker?
Explain the term ‘infrastructure’.
What is meant by environment?
Why are regional and economic groupings formed?
Why calorie-based norm is not adequate to identify the poor?
Name some notable economists who estimated India’s per capita income during the colonial period?
Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in Mother Dairy (iv) a tuition master (v) transport operator (vi) construction worker.
Illustrate the difference between rural and urban poverty. Is it correct to say that poverty has shifted from rural to urban areas? Use the trends in poverty ratio to support your answer.
Do you think that in the last 50 years, employment generated in the country is commensurate with the growth of GDP in India? How?
What are the functions of the environment?
Indicate the volume and direction of trade at the time of independence.
State any four pressing environmental concerns of India. Correction for environmental damages involves opportunity costs — explain.
Why was the public sector given a leading role in industrial development during the planning period?
Suppose you are a resident of a village, suggest a few measures to tackle the problem of poverty.
What problems are being faced by the power sector in India?
Describe the path of developmental initiatives taken by Pakistan for its economic development.