Which of the following is a key reason for the decline in the agricultural sector in India after 1991 economic reforms?
Show answer & explanation
Correct answer: C
Explanation
Answer: Shift toward export-oriented cash crops and reduced public investment
Explanation: After the 1991 economic reforms, India adopted liberalization, privatization, and globalization (LPG) policies. While these reforms boosted industrial and service sectors, agriculture faced certain structural challenges.
A key reason for the relative decline in agriculture was:
A shift toward export-oriented cash crops (like cotton, sugarcane, spices) instead of food crops in some regions
Reduced public investment in agriculture, especially in:
irrigation infrastructure
rural credit systems
agricultural research and extension services
This led to slower growth in agriculture compared to other sectors.
Additional Key Points:
Post-1991, agriculture’s share in GDP declined steadily, though it still employed a large population
Green Revolution gains began to stagnate in some regions
Farmers faced issues like:
price volatility
input cost increase
lack of infrastructure investment
Growth shifted toward industry and services sectors
Potential Exam-Oriented Questions & Answers:
Question: What is a cash crop?
Answer: A crop grown for sale in the market (not for personal consumption)
Question: What is one major issue faced by Indian agriculture post-reforms?
Answer: Reduced public investment and infrastructure gaps