While subsidies encourage farmers to use new technology, they are a huge burden on govern ¬ment finances. Discuss the usefulness of subsidies in the light of this face.
Subsidy is an economic benefit, direct or indirect, granted by a government to domestic producers of goods or services, often to strengthen their competitive position against foreign companies.
It helps farmers to buy HYV seeds, fertilizers and other inputs. The burden of granting subsidies falls on the government. The government has to bear the burden of financing subsidies.
There is scope for improving the resource use efficiency by reducing subsidies and aiming them better to small farmers and regions lagging behind.
What is Green Revolution? Why was it implemented and how did it benefit the farmers? Explain in brief.
Why was it necessary for a developing country like India to follow self-reliance as a planning
Though public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy’s resources. Discuss the usefulness of public sector undertakings in the light of this fact.
Why was public sector given a leading role in industrial development during the planning period?
While subsidies encourage farmers to use new technology, they are a huge burden on govern ¬ment finances. Discuss the usefulness of subsidies in the light of this face.
What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.
Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.
Why, despite the implementation of green revolution, 65 per cent of our population continued to be engaged in the agriculture sector till 1990?
Explain the statement that green revolution enabled the government to procure sufficient foodgrains to build its stocks that could be used during times of shortage.