Agriculture in The National Economic

Total Questions: 35

21. Which of the following has/have occurred in India after its liberalization of economic policies in 1991? [2017-1]

1. Share of agriculture in GDP increased enormously.

2. Share of India's exports in world trade increased.

3. FDI inflows increased.

4. India's foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

Correct Answer: (b) 2, 3 & 4 only
Solution:From the statistical appendix given in the economic survey 2015-16 the answer is "B". While it's possible that in some years, FDI and world share in exports would have declined than previous years because of global financial crisis, but by and large compared to Pre-LPG and Post-LPG, there is definitely an increase.
• Agriculture serves as the backbone of India’s economy, playing a pivotal role in ensuring food security, providing employment, and contributing to overall economic development.
• It is envisioned as one of the four engines of development (others are MSMEs, Investments, and Exports) in the recently announced Union Budget of 2025-26.
o These engines are aimed at driving sustainable growth and achieving the vision of a ‘Viksit Bharat’ (Developed India) by 2047.

22. Consider the following statements: [2017-1]

1. The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.

2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).

Which of the statements given above is/are correct?

Correct Answer: (a) 1 only
Solution:First is correct as per BIS website. And AGMARK is issued under Indian Act. Besides, it's an 'extreme statement', FAO would not bother with small things.
About Bureau of Indian Standards
• It is the National Standard Body of India established under the BIS Act 2016.
• Objective: It was established for the harmonious development of the activities of standardization, marking, and quality certification of goods and for matters connected therewith or incidental thereto.
• It is the successor of the Indian Standards Institution (ISI), which was created in 1947 to ensure quality control and competitive efficiency in the rapid industrialization era.
• BIS represents India in International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC).
• Nodal Ministry: It is functioning under the administrative control of the Ministry of Consumer Affairs, Food and Public Distribution.
• Headquarter: It is headquartered in New Delhi and maintains regional and branch offices throughout the country..

23. With reference to organic farming in India, consider the following statements: [2019-1]

1. The National Programme for Organic Production' (NPOP) is operated under the guidelines and directions of the Union Ministry of Rural Development.

2. The Agricultural and Processed Food Products Export Development Authority' (APEDA) functions as the Secretariat for the implementation of NPOP.

3. Sikkim has become India's first fully organic State.

Which of the statements given above is/are correct?

Correct Answer: (b) 2 & 3 only
Solution:This scheme is under Commerce ministry, but Secretariat assistance by APEDA so #1 is wrong, #2 is right. Sikkim indeed India's first fully organic state So, #3 is right.
Organic farming is a sustainable agricultural approach that avoids synthetic chemicals and relies on natural inputs. Its roots trace back to ancient civilisations and gained momentum in the 20th century. Organic farming is based on principles of health, ecology, fairness, and care, ensuring soil fertility, biodiversity conservation, and minimal environmental impact.
Organic farming has advantages but also faces challenges such as higher costs, lower yields, and complex certification processes. Government initiatives like the NPOP provide support through financial aid and certification help. To make organic farming more sustainable and scalable, greater investment is needed in research, affordable certification, advanced technologies like AI and drones, and stronger supply chains.

24. Consider the following statements: [2019-1]

1. According to the Indian Patents Act, a biological process to create a seed can be patented in India.

2. In India, there is no Intellectual Property Appellate Board.

3. Plant Varieties are not eligible to the patented in India.

Which of the statements given above is/ are correct?

Correct Answer: (c) 3 only
Solution:National IPR Policy 2016 shifted the Copyright Office and its statutory body Intellectual Property Appellate Board (IPAB) from HRD ministry to commerce ministry.

India Patent Act: Chapter 2: Inventions not patentable: Bullet (j): plants and animals in whole or any part thereof, including seeds, varieties and species. So, #1 is wrong, #3 is right, answer is (c).
• A patent is an exclusive right provided by the government to the applicant for his/her disclosed invention of an industrial product or process that must be

  • Novel,
  • Non-obvious,
  • Useful, and
  • Patentable as defined by national law.

• A patent provides a technological solution to a technical challenge.
• The government grants legal protection to inventions for a limited time, i.e., 20 years from the date of filing.
• What is and is not patentable in India is explicitly stated in the Indian Patents Act 1970.
• The Controller General of Patents, Designs & Trademarks (CGPDTM) i

25. Consider the following statements: [2019-1]

1. Most of India's external debt is owed by government entities.

2. All of India's external debt is denominated in US dollars.

Which of the statements given above is/are correct?

Correct Answer: (d) Neither 1 nor 2
Solution:Majority of the external debt is by the private sector's external commercial borrowing (ECB). So #1 is wrong.

Second statement is extreme worded hyperbole so it's wrong. But just to crosscheck: Page 154 of 154 Economic Survey 2016-17: US dollar denominated debt accounted for 55.6 per cent of India's total external debt at end- September 2016, followed by Indian rupee (30.1 per cent), SDR (5.8 per cent).

Japanese Yen (4.8 per cent) Pound Sterling (0.7 per cent), Euro (2.4 per cent) and others (0.6 per cent).

26. The economic cost of food grains to the Food Corporation Of India is Minimum Support Price and bonus (if any) paid to the farmers plus: [2019-1]

Correct Answer: (c) Procurement incidentals and distribution costs
Solution:Page 117, Economic Survey 2017-18 Volume 2
Economic Cost of foodgrains consists of three components: Pooled cost of grains, which is the weighted MSP of the stock of foodgrains available with FCI, procurement incidentals, cost of distribution.
Thus answer is (c).
About Minimum Support Price
• Minimum Support Price (MSP) is a “minimum price” for any crop that the government considers as remunerative for farmers and hence deserving of “support”.
• It is also the price that government agencies pay whenever they procure a particular crop. Simply, the MSP is the rate at which the government buys grains from farmers.
• The Commission for Agricultural Costs & Prices (CACP) in the Ministry of Agriculture recommends MSPs for 23 crops (22 mandated crops and fair and remunerative price (FRP) for sugarcane) but MSP is declared for 25 crops (toria and de-husked coconut). MSP is announced at the beginning of the sowing season.
• The MSP is fixed by the Central government on the recommendations of the CACP.
• After receiving the feedback, the Cabinet Committee on Economic Affairs (CCEA) of the Union government makes a final decision on the level of MSPs and other recommendations made by the CACP.
• The Food Corporation of India (FCI), the nodal agency, along with other State Agencies undertakes procurement of crops.
• There is neither statutory backing for these prices nor any law mandating their enforcement. Thus, the government is not legally bound to pay these even if open market rates for the said produce are ruling below their announcement floor prices.

27. With reference to chemical fertilizers in India, consider the following statements: [2020-1]

1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.

2. Ammonia, which is an input of urea, is produced from natural gas.

3. Sulphur, which is a raw material for phosphoric acid fertilizer is a by-product of oil refineries.

Which of the statements given above is/are correct?

Correct Answer: (b) 2 & 3 only
Solution:2 is right as per.

2019: Government replied in Rajya Sabha, "As far as market-linking of urea prices is concerned, the MRP of urea is statutorily fixed by the Government.

Whereas, MRP of Phosphatic and Potassic (P&K) Fertilizers the manufacturers/marketers are allowed to fix the MRP at reasonable rates as per market dynamics." Therefore first statement is not fully correct. So #1 is wrong.

Indian Bureau of mines booklet: The sulphur is obtained as a by-product from oil refineries. Most of the sulphur is converted to sulphuric acid (H₂SO₄) which is used in the manufacture of phosphatic fertilizer. So #3 should be correct. Hence the answer is "b".

In 2019, the top importers of Mixed Mineral or Chemical Fertilizers were Brazil, India, United States, China, and Canada

28. With reference to pulse production in India, consider the following sentences: [2020-1]

1. Black gram (Urad) can be cultivated as both Kharif and rabi crop.

2. Green gram (Moong) alone accounts for nearly half of pulse production.

3. In the last three decades, while the production of kharif pulses has increased, the production of rabi pulses has decreased.

Which of the statements given above is/are correct?

Correct Answer: (a) 1 only
Solution:India produces a variety of pulses so it is difficult to believe that green gram alone accounts for nearly 50% of production. #2 should be wrong. And by elimination the answer should be "A". But just to be sure let's cross check with the data.

Looking at the PIB production data of 2016, 2017 and 2018: Gram (Chanaa) and Tur production seem to be higher than Green gram (Moong), so, #2 is wrong. So, b, c and d were eliminated.

Further in the same data set we can also see that There is no clear cut increase or decrease as described in the statement 3. So #3 is wrong. And, Black gram (urad) Production detail for both Rabi and kharif seasons are given so #1 is right.

29. In India, which of the following can be considered as public investment in agriculture? [2020-1]

1. Fixing Minimum Support Price for agriculture produce of all crops

2. Computerization of Primary Agriculture Credit Societies

3. Social Capital development

4. Free electricity supply of farmers

5. Waiver of agriculture loans by the banking system

6. Setting up of cold storage facilities by the governments

Select the correct answer using the code given below:

Correct Answer: (c) 2, 3 & 6 only
Solution:Investment is a term associated with the capital part of the budget. So "subsidy" - a revenue part is not an example of 'public investment".

Economic Survey 2019-20 page 84 also confirms this Free electricity to farmers involves the government paying subsidy to the electricity company.

Therefore #4 is wrong. Setting up of cold storage facilities can help in preservation of the perishable agricultural commodities so #6 is valid. So, answer should be "e".

30. Consider the following statements: [2020-11]

1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.

2. In the case of cereals and pulses, the MSP is fixed in any State UT at a level to which the market price will never rise.

Which of the statements given above is/are correct?

Correct Answer: (d) Neither 1 nor 2
Solution:Successive Economic surveys have highlighted that Government's open ended procurement is limited to wheat and rice.

And even after PM-AASHA reforms, procurement is not done for all the cereals for which MSP is announced (e.g. Jowar, Bajra, Ragi etc). So, #1 is wrong.

Market factors of Supply and demand may create a scenario where market price of cereal/pulses may rise higher than MSP. Market players are not legally bound to keep their prices lower or higher than MSP. So, #2 is wrong.

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is an umbrella scheme to ensure Minimum Support Price (MSP) to farmers.

It comprises the erstwhile Price Support Scheme (PSS) with certain modifications and rolling out of new schemes of Price Deficiency Payment Scheme (PDPS) and pilot of Private Procurement and Stockist Scheme (PPSS).