Topics: CH-2: INDIAN ECONOMY 1950–1990, Indian Economic Development, NCERT Books

Subsidy Debate

Question

Some economists argue agricultural subsidies should be phased out because:

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Question (English)

Some economists argue agricultural subsidies should be phased out because:

  1. They have never been useful
  2. Once technology is widely adopted, their purpose is served and they burden government finances ✓ Correct
  3. Small farmers don't need them
  4. They reduce agricultural output
Explanation:
Correct Answer Explanation

Once technology is widely adopted, subsidies should be phased out as their purpose is served and they are a huge burden on government finances.

Key Points:
  • Fertiliser subsidy also benefits the fertiliser industry.
  • Among farmers, subsidies largely benefit those in prosperous regions.
  • Counter-argument: farming remains risky, most farmers are very poor.

📚 About this Topic — CH-2: INDIAN ECONOMY 1950–1990

This multiple choice question is from CH-2: INDIAN ECONOMY 1950–1990, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-2: INDIAN ECONOMY 1950–1990 to strengthen your preparation.

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