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 :
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Answer: C. Public investment means the government spending on lasting assets. Computerising PACS, building social capital (like farmer groups and training) and setting up cold storage create long-term assets. MSP, free electricity and loan waivers are support prices or subsidies, not investment. So 2, 3 and 6.
Watch for: All these help farmers, but only asset-creating spending counts as investment.
Why the other options are wrong
- A. Wrong because MSP and loan waivers are not investments.
- B. Wrong because MSP, free power and loan waivers are subsidies or support, not investment.
- D. Wrong because MSP, free electricity and loan waivers are not investments.
Source to check: Economic Survey of India (agriculture chapter); NCERT Class 12 Introductory Macroeconomics (investment as capital formation)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.