Passage

In India, agriculture still engages about half of its workforce, and about 85 per cent of its farms are small and marginal. Compared to China and Vietnam, which have experienced fast structural and rural transformation, India’s story is of slow transformation. As a result, poverty reduction in India was at much slower pace during 1988-2014, compared to China and Vietnam. India’s poverty reduction was slow during 1988-2005, but during 2005-2012, it accelerated dramatically–almost three times faster than during the earlier period. What did India do during this period? Research reveals that the relative price scenario changed significantly (by more than 50%) in favour of agriculture in the wake of rising global prices. This boosted private investments in agriculture by more than 50%. As a result, agri-GDP growth touched 4.1% during 2007-2012 as against 2.4% during 2002-2007. The net surplus of agri-trade touched $25 billion in 2013-2014; real farm wages rose by 7% per annum. All this led to unprecedented fall in poverty.

QUESTION

CSAT

Hard

Comprehension

Prelims 2020

Which one of the following statements best reflects the critical message of the passage?

Select an option to attempt

Explanation

Statement A is incorrect. While creating large-scale off-farm rural employment can help reduce poverty, the passage does not focus on this aspect.

Statement B is incorrect. The passage does not emphasize the creation of farmer producer companies as a solution for poverty reduction.

Statement C is incorrect. The passage does not suggest that private investment in agriculture should take priority over public investment. It emphasizes a balance of investments to achieve structural and rural transformation.

Statement D is correct. The passage highlights inclusive agricultural growth as a key factor in reducing poverty. This includes structural and rural transformation, value chain development for high-value agricultural products, and increased private and public investments in agriculture.