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How did globalisation impact Indian agriculture after 1991? 
Question

How did globalisation impact Indian agriculture after 1991? 

A.

Decreased crop yields

B.

Increased subsidies for farmers

C.

Enhanced competition and access to global markets

D.

Complete reliance on imports

Correct option is C

The correct answer is (c) Enhanced competition and access to global markets.
Explanation:
After 1991, when India embraced economic liberalization, globalization significantly impacted its agriculture sector. The introduction of liberalization policies led to the opening of Indian markets to international competition, resulting in increased access to global markets for agricultural products.
Indian farmers could now export their goods and also faced competition from foreign agricultural products in domestic markets.
Information Booster:
Key impacts:
  • Access to global markets allowed Indian agricultural products, such as spices, textiles, and fruits, to find new buyers and markets abroad.

  • The competition from foreign goods, especially subsidized crops from developed countries, put pressure on Indian farmers to improve their productivity and reduce costs.

  • Market Access: India’s agriculture gained access to international markets due to reduced trade barriers, fostering the export of agricultural products like rice, wheat, and horticultural products

  • Competition: With the removal of trade restrictions and tariffs, Indian farmers faced competition from cheaper imports, which affected certain sectors, especially in areas like food grains and dairy products.

  • Technological Advancement: Globalization encouraged the adoption of new technologies in farming practices, including the use of high-yield varieties, biotechnology, and irrigation systems.

Additional Information:
  • Decreased crop yields: Often caused by climate change, drought, pests, or poor soil quality, Impacts food production, leading to scarcity and higher prices, Affects farmers' income and can increase dependency on government support.
  • Increased subsidies for farmers: Government financial support aimed at reducing farming costs, Helps maintain farmers' income stability and encourage crop production, Includes subsidies for fertilizers, seeds, electricity, and water.
  • Complete reliance on imports: Countries may need to import food or agricultural products due to insufficient domestic production, This can lead to trade imbalances and make economies vulnerable to global price fluctuations​

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