(a) (i) “Under the liberalisation measures taken by the Government of India, Trade and Investment Policy reforms were extremely crucial.” Reject or…

The given statement is supported. Trade and Investment Policy of India were extremely crucial and had undergone comprehensive changes in the post reforms period of 1991. Liberalisation of this policy led to an increase in international competitiveness of industrial production and inflow of foreign investments and technology. These policy reforms aimed at dismantling the structure of quantitative restrictions, reducing tariffs and relaxation in licensing procedure in foreign trade. Export duties were rationalised with an objective to promote exports of Indian goods in international markets.

Some economists argue that Green Revolution did not make much impact on the occupational structure of the country, as $\displaystyle 65$% of India’s population continued to find its livelihood in agriculture. A major reason for this fairly large proportion of population in agricultural sector as the industrial and service sector were not able to absorb the people working in the agricultural sector.

The introduction of farm subsidies had been an opinionated step taken by the Government of India.

Arguments in favour of continuing farm subsidies:

Arguments against farm subsidies:

For a nation, both growth of Gross Domestic Product (GDP) and equity in distribution of income are equally important. Growth refers to an increase in a country’s capacity to produce goods and services. Equity refers to reductions in inequality of income and wealth.

Growth with equity ensures that the fruits of economic development are enjoyed by all sections of society equitably. Hence, achieving equitable growth is an important objective that was taken into consideration in the Indian economic planning.