Given below are two statements, one labelled as Assertion (A) and the other is Reason (R) :
Assertion (A) : Economic Liberalisation widened regional disparity in agricultural development in India.
Reason (R) : Public investment in agricultural declined significantly during post-liberalisation period.
In the context of the above two statements, which among the following is correct ?

The correct answer is - (A) is false but (R) is true

Key Points

• Assertion (A): Economic liberalization widened regional disparity in agricultural development in India.
  • This statement is false because while regional disparities in agriculture do exist, they are not solely attributable to economic liberalization.
  • Economic liberalization primarily focused on industrial and service sectors; its direct impact on agriculture is limited.
  • Regional disparities in agriculture are more influenced by pre-existing factors such as climatic conditions, soil quality, and state-level agricultural policies.
• Reason (R): Public investment in agriculture declined significantly during the post-liberalization period.
  • This statement is true because data indicates a reduction in public expenditure on agriculture after the 1991 reforms.
  • Post-liberalization policies prioritized fiscal consolidation and industrial growth, leading to a decline in government support for agricultural infrastructure and research.
• The combination of a false assertion and a true reason makes Option 4 the correct answer.

Additional Information

• Economic Liberalization in India (1991):
  • Introduced reforms such as privatization, globalization, and deregulation.
  • Focused on reducing government intervention in the economy and promoting market-driven growth.
  • Its primary impact was observed in the industrial and service sectors rather than agriculture.
• Public Investment in Agriculture:
  • Includes expenditure on irrigation, rural infrastructure, agricultural research, and subsidies.
  • The decline in public investment after 1991 led to slower growth in agricultural productivity and rural development.
  • Private sector investment partially compensated for this decline but primarily focused on commercial crops, leading to uneven development.
• Regional Disparities in Agriculture:
  • Caused by factors such as unequal distribution of natural resources, state-level policies, and access to markets.
  • For example, states like Punjab and Haryana have benefited from the Green Revolution, while others, like Odisha and Bihar, lag behind.