Apedia Logo Apedia
Join

Choose Language

Select your preferred reading language
🇬🇧
English
✔
🇮🇳
हिन्दी
✔
✕
Full View
Economy
Agriculture
EN हिंदी
✕
UPSC Prelims 2020 Paper-1 📅 04 Oct, 2020

In India, which of the following can be considered as public investment in agriculture?
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
Select the correct answer using the code given below:

A
1, 2 and 5 only
B
1, 3, 4 and 5 only
C
2, 3 and 6 only
D
1, 2, 3, 4, 5 and 6
Result Summary
Logo

APEDIA

UPSC Prelims
2020 • 04 Oct, 2020 • Paper-1
In India, which of the following can be considered as public investment in agriculture?
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
Select the correct answer using the code given below:
Correct Answer
2, 3 and 6 only
Distinguishing Investment vs Subsidies: Public investment refers to capital expenditure that creates long-term durable assets and improves productive capacity. ......
Ref/Book : UPSC Prelims 2020
Ref. Subject Economy
Chapter -
Ref. Topic Agriculture
Pg. No -
💡 Analysis & Explanation
Distinguishing Investment vs Subsidies ▼
Public investment refers to capital expenditure that creates long-term durable assets and improves productive capacity. In contrast, measures like Minimum Support Price (MSP), free electricity, and loan waivers are short-term revenue expenditures, functioning purely as welfare subsidies rather than asset-creating investments. This eliminates points 1, 4, and 5.
Asset Creation Activities ▼
The computerization of credit societies (enhancing institutional efficiency), the development of social capital (building farmer producer organizations and community networks), and the establishment of physical cold storage infrastructure represent true capital investments that permanently upgrade the agricultural ecosystem.
Conclusion ▼
Points 2, 3, and 6 correctly identify forms of genuine public investment.
← Prev
61 / 100
Next →