10 Mar 2022

TNPSC Indian Economy – Land Reforms and Agriculture

TNPSC Indian Economy – Land Reforms and Agriculture:

Indian Economics questions are more important for the TNPSC Group 2 Prelims Exam. You will get 6 t0 8 marks from that Indian Economy portion. On this page, TNPSC Group 2, 2a, and Group 4 TNPSC Indian Economy Study Materials questions with answers are uploaded. Go through TNPSC Indian Economy Notes, Questions, and Answers below for the prelims exam.

Students who are preparing for the Group exam concentrate more on the maths part. you will easily score more marks in the Economics part. For students’ benefit, we upload TNPSC Indian Economy English and Tamil questions and answers in PDF for download. TNPSC aspirants can download and use it for the group prelims exam. kindly download TNPSC Indian Economy PDF given below:

Impact of LPG on Agricultural Sector Reforms:

  • Since the inception of economic reforms, Indian economy has achieved a remarkable rate of growth in industry and service sector.
  • However, this growth process bypassed the agricultural sector, which showed  sharp deceleration in the growth rate (3.62 percent during 1984/85 – 1995/96 to 1.97 percent in 1995/96 – 2004/05).
  • The sector has recorded wide variations in yield and productivity and there was a shift towards cash crop cultivation.
  • Moreover, agricultural indebtedness pushed several farming households into poverty and some of them resorted to extreme measures like suicides.

Crop Insurance:

  • Agriculture in India is highly prone to risks like droughts and floods. It is necessary to protect the farmers from
    natural calamities and ensure their credit eligibility for the next season.
  • For this purpose, the Government of India introduced many agricultural schemes throughout the country.
  • The Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme) was launched on 18 February 2016.
  • It envisages a uniform premium of only 2 percent to be paid by farmers for Kharif crops and 1.5 percent for Rabi crops. The premium for (annual) commercial and horticultural crops will be 5 percent.

Cold Storage:

  • India is the largest producer of fruits and the second-largest producer of vegetables in the world.
  • In spite of that per capita availability of fruits and vegetables is quite low because of post-harvest losses which account for about 25% to 30% of production.
  • Besides, the quality of a sizable quantity of produce also deteriorates by the time it reaches the consumer.
  • Most of the problems relating to the marketing of fruits and vegetables can be traced to their perishability.
  • Perishability is responsible for high marketing costs, market gluts, price fluctuations, and other similar problems.
  • In order to overcome this constraint, the Government of India and the Ministry of Agriculture promulgated an order known as “Cold Storage Order, 1964” under Section 3 of the Essential Commodities Act, 1955.
  • However, the cold storage facility is still very poor and highly inadequate.

Post Harvest measures:

  • The annual value of harvest and post-harvest losses of major agricultural produce at the national level was of the order of Rs.92,651 crores, calculated using production data of 2012-13 at 2014 and wholesale prices, estimated by the Indian Council of Agricultural Research (ICAR).


Food Items Waste (%)
Crops Cumulative

wastages (%)

Cereals 5-6
Pulses 6 – 8
Oilseeds 3-10
Fruits &Vegetables 5-16
Milk 1
Fisheries (in land) 5
Fisheries (Marine) 10
Meat 3
Poultry 7

Source: Ministry of Food Processing Industries, GoI, 2016

In order to reduce wastage of agricultural produce and minimize post-harvest losses, the Ministry of Food Processing Industries (MoFPI) has implemented various components of Central Sector Schemes,

  • Mega Food Parks; Integrated Cold Chain; Value Addition Preservation Infrastructure; Modernization of Slaughterhouse
  • Scheme for Quality Assurance; Codex Standards; Research and Development and Other promotional activities.
  • Further, the GoI extended support to arrest post-harvest losses of horticulture and non-horticulture produce and to provide integrated cold chain and preservation infrastructure facilities from the farm gate to the consumer or from the production site to the market since 2008-09. However, the improvement is not visible for it is not substantial.

Kisan Credit Card Scheme:

  • A Kisan Credit Card (KCC) is a credit the delivery mechanism that is aimed at enabling farmers to have quick and timely access to affordable credit.
  • It was launched in 1998 by the Reserve Bank of India and NABARD.
  • The scheme aims to reduce farmer dependence on the informal banking sector for credit – which can be very expensive and suck them into a debt spiral.
  • The card is offered by cooperative banks, regional rural banks, and public sector banks.
  • Based on a review of the working of the KCC, the government has advised banks to convert the KCC into a smart card cum debit card.

Agricultural Produce Market Committee:

Agricultural Produce Market Committee (APMC) is a statutory body constituted by the state government in order to trade in agricultural or horticultural or livestock products.

Functions of APMC

Functions of APMC are:

1. To promote public-private partnership in the ambit of agricultural markets.
2. To provide market-led extension services to farmers.
3. To bring transparency in the pricing system and transactions taking place in the market in a transparent manner.
4. To ensure payments to the farmers for the sale of agricultural produce on the same day.
5. To promote agricultural activities.
6. To display data on arrivals and rates of agricultural produce from time to time into the market.

Agrarian Crisis after Reforms:

a) High input Costs

b) Cutback in agricultural subsidies

c) Reduction of import duties

d) Paucity of credit facilities

Land Reforms and Agriculture Questions & Answers:

1. Which of the following is the way of Privatisation?
a. Disinvestment  b. Denationalization  c. Franchising d. All the above

2. Countries today are to be _____ for their growth.
a. Dependent b. Interdependent c. Free trade d. Capitalist

3. The Arguments against LPG is _________
a. Economic growth  b. More investment  c. Disparities among people and regions  d. Modernization

4. Expansion of FDI ____________
a. Foreign Private Investment  b. Foreign Portfolio  c. Foreign Direct Investment  d. Forex Private Investment

5. India is the largest producer of ___________ in the world.
a. fruits  b. gold  c. petrol  d. diesel

6. Foreign investment includes__________
a. FDI only  b. FPI and FFI  c. FDI and FPI  d. FDI and FFI

7. The Special Economic Zones policy was announced in ___________
a. April 2000  b. July 1990  c. April 1980  d. July 1970

8. Agricultural Produce Market Committee is a ___________
a. Advisory body  b. Statutory body  c. Both a and b  d. non of these above

9. Goods and Services Tax is _______________
a. a multi point tax  b. having cascading effects  c. like Value Added Tax  d. a single point tax with no cascading effects.

10. The New Foreign Trade Policy was announced in the year_____________
a. 2000  b. 2002  c. 2010  d. 2015

11. Financial Sector reforms mainly related to _______________
a. Insurance Sector  b. Banking Sector  c. Both a and b  d. Transport Sector

12. The Goods and Services Tax Act came in to effect on ________
a. 1st July 2017  b. 1st July 2016  c. 1st January 2017  d. 1st January 2016

13. The new economic policy is concerned with the following
a. foreign investment  b. foreign technology  c. foreign trade  d. all the above

14. The recommendation of Narashimham Committee Report was submitted in the year________
a. 1990  b. 1991  c. 1995  d. 2000

15. The farmers have access to credit under Kisan credit card scheme through the following except
a. co-operative banks  b. RRBs c. Public sector banks  d. private banks\

16. The Raja Chelliah Committee on Trade Policy Reforms suggested the peak rate on import duties at
a. 25% b. 50% c. 60% d. 100%

17. The first ever SEZ in India was set up at
a. Mumbai b. Chennai c. Kandla d. Cochin

18. ‘The Hindu Rate of Growth’ coined by Raj Krishna refers to
a. low rate of economic growth  b. high proportion of Hindu population  c. Stable GDP d. none

19. The highest rate of tax under GST is ___________ (as on July1, 2017)
a. 18%  b. 24%  c. 28%  d. 32%

20. The transfer of ownership from the public sector to the private sector is known as _____.
a. Globalization  b. Liberalization  c. Privatization  d. Nationalization



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