Agriculture sector has been adversely affected by the Economic reform process.’ Comment.

Question :Agriculture sector has been adversely affected by the Economic reform process.’ Comment.

The correct answer is -The impact of economic reforms on the agriculture sector in India has been a subject of debate and analysis. While some argue that the reforms have had a negative impact on the sector, others contend that they have had a positive impact.

One of the major concerns regarding the impact of economic reforms on the agriculture sector is the issue of market access. With the liberalisation of the economy, there has been a shift towards market-oriented policies, which have led to increased competition and the entry of multinational corporations into the Indian market. This has made it difficult for small farmers to compete and has resulted in a decline in prices for their produce.

Another issue is the reduction in government support for agriculture. With the liberalisation of the economy, the government reduced subsidies and support to the agriculture sector, which had a negative impact on small farmers who were heavily dependent on government support.

Moreover, the liberalisation of the economy led to a shift towards industrialisation and the service sector, which resulted in a decline in the share of agriculture in the overall GDP of the country. This further reduced the focus on the agriculture sector and resulted in a lack of investment and infrastructure development in the sector.

However, it is important to note that the economic reforms also led to the development of agro-industries and the growth of exports in the agriculture sector. This helped to create new opportunities for farmers and resulted in the development of new markets.

Overall, while the impact of economic reforms on the agriculture sector has been mixed, it is important to ensure that policies are in place to support small farmers and to promote sustainable agriculture practices. This can help to ensure that the agriculture sector continues to play a critical role in the country’s economy and provides a livelihood for millions of farmers in India.