Question -
Answer -
Economic reforms initiated in 1991 did not have an impact on the agriculture industry. Here are the reasons:
1. Public investment decreased in the agriculture sector after 1991, the Indian government has reduced support for research and development in agriculture and supported services that had a negative impact on agriculture.
2. As subsidies were removed from fertilisers, the cost of production escalated which made farming more expensive, it also affected poor farmers.
3. By complying with WTO regulations, import duties on agricultural products were reduced which made it difficult for poor farmers to compete against products of the international market.
4. Shifting focus on producing more cash crops and removal of subsidies exerted a double impact which resulted in inflation making the cost of production more expensive