UPSC CSE Prelims
Question 60
In India, which of the following can be considered as public investment in agriculture?
- Fixing Minimum Support Price for agriculture produce of all crops
- Computerization of Primary Agriculture Credit Societies
- Social Capital development
- Free electricity supply to farmers
- Waiver of agriculture loans by the banking system
- Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
View correct answer and explanation
Correct answer: C
Correct Option: C (2, 3 & 6 only)
Explanation: Public investment creates or upgrades productive infrastructure and institutions; digitising agricultural cooperatives, developing social capital and public cold storage do so, unlike price setting, recurrent subsidies and debt waivers.
Statement / Pair / Item-wise Analysis:
1. Incorrect - Announcing MSP is price policy, not creation of public capital assets.
2. Correct - Computerising PACS upgrades cooperative credit infrastructure.
3. Correct - Social-capital development builds community institutions and productive coordination.
4. Incorrect - Free electricity is a recurring subsidy, not capital investment by itself.
5. Incorrect - Loan waivers relieve liabilities but generally do not create new agricultural assets.
6. Correct - Government-built cold stores are agricultural capital infrastructure.
Option-wise Analysis:
A. Incorrect-includes incorrect item 1 (Announcing MSP is price policy, not creation of public capital assets); includes incorrect item 5 (Loan waivers relieve liabilities but generally do not create new agricultural assets); omits correct item 3 (Social-capital development builds community institutions and productive coordination); omits correct item 6 (Government-built cold stores are agricultural capital infrastructure).
B. Incorrect-includes incorrect item 1 (Announcing MSP is price policy, not creation of public capital assets); includes incorrect item 4 (Free electricity is a recurring subsidy, not capital investment by itself); includes incorrect item 5 (Loan waivers relieve liabilities but generally do not create new agricultural assets); omits correct item 2 (Computerising PACS upgrades cooperative credit infrastructure); omits correct item 6 (Government-built cold stores are agricultural capital infrastructure).
C. Correct-includes all and only valid statements/items 2, 3, 6.
D. Incorrect-includes incorrect item 1 (Announcing MSP is price policy, not creation of public capital assets); includes incorrect item 4 (Free electricity is a recurring subsidy, not capital investment by itself); includes incorrect item 5 (Loan waivers relieve liabilities but generally do not create new agricultural assets).