Green Revolution Impact on Credit
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Question (English)
The Green Revolution was a harbinger of major changes in the credit system as it led to:
- Decline in agricultural production
- Diversification of rural credit towards production-oriented lending ✓ Correct
- Closure of rural banks
- Increase in informal lending
Explanation:
Correct Answer Explanation
The Green Revolution was a harbinger of major changes in the credit system as it led to the diversification of the portfolio of rural credit towards production-oriented lending.
Key Points:
- Green Revolution introduced HYV seeds, fertilisers, and modern techniques requiring more credit.
- It shifted lending from consumption-oriented to production-oriented.
- This transformation improved agricultural productivity significantly.
Why Other Options Are Wrong
- A: Green Revolution increased, not declined, agricultural production.
- C: Rural banks expanded, not closed, during this period.
- D: Formal lending increased, reducing dependence on informal sources.
📚 About this Topic — CH-5: RURAL DEVELOPMENT
This multiple choice question is from CH-5: RURAL DEVELOPMENT, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-5: RURAL DEVELOPMENT to strengthen your preparation.
