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GS Paper IUPSC Prelims 2020
Agriculture & Rural Economy
Question No. 37Interactive Test Mode
00:00
+2-0.66

Q37. In India, which of the following can be considered as public investment in agriculture? 1. Fixing Minimum Support Price for agricultural produce of all crops. 2. Computerization of Primary Agricultural Credit Societies 3. Social Capital development 4. Free electricity supply to farmers 5. Waiver of agricultural loans by the banking system 6. Setting up cold storage facilities by the governments. Select the correct answer using the code given below.

In India, which of the following can be considered as public investment in agriculture?

  1. Fixing Minimum Support Price for agricultural produce of all crops.
  2. Computerization of Primary Agricultural Credit Societies
  3. Social Capital development
  4. Free electricity supply to farmers
  5. Waiver of agricultural loans by the banking system
  6. Setting up cold storage facilities by the governments. Select the correct answer using the code given below.
Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2020 • Indian Economy

Correct Answer: Option (C) — 2, 3 and 6 only

Concept & Option Breakdown

Standard Reference Verified

Public investment refers to expenditure that creates physical capital, enduring infrastructure, or institutional capacity leading to long-term productivity enhancement.

  • Statements 2, 3, and 6 represent capital and capacity-building investments (digitizing credit societies, developing farmer institutions/social capital, and creating cold storage logistics).
  • Statements 1, 4, and 5 represent revenue expenditures, price supports, or transfer payments (subsidies and debt relief), not capital formation/investment.
Elimination Heuristic & Exam Approach

Distinguish between 'Investment' (creates long-term capital assets/capacity) and 'Subsidies/Transfers' (short-term relief like loan waivers or free power). Eliminating 4 and 5 immediately leads to (c).

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2020 (Q37)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Agriculture & Rural Economy
Official Answer KeyOption (C) — 2, 3 and 6 only

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Frequently Asked Questions — UPSC Prelims 2020 Q37

What is the official answer for UPSC Prelims 2020 GS Paper I Question 37 (Indian Economy)?

The official UPSC answer key for this 2020 Indian Economy (Agriculture & Rural Economy) question is Option (C): "2, 3 and 6 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2020 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Agriculture & Rural Economy". You can explore all repeated questions from Agriculture & Rural Economy in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Agriculture & Rural Economy UPSC Prelims question using option elimination?

Distinguish between 'Investment' (creates longterm capital assets/capacity) and 'Subsidies/Transfers' (shortterm relief like loan waivers or free power). Eliminating 4 and 5 immediately leads to (c).

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Next QuestionUnder the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? 1. Working capital for maintenance of farm assets 2. Purchase of combine harvesters, tractors and mini trucks. 3. Consumption requirements of farm households 4. Post-harvest expense 5. Construction of a family house and setting up a village cold storage facility. Select the correct answer using the code given below: