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

Question

In India, which of the following can be considered as public investment in agriculture?Fixing Minimum Support Price for agricultural produce of all crops.Computerization of Primary Agricultural Credit SocietiesSocial Capital developmentFree electricity supply to farmersWaiver of agricultural loans by the banking systemSetting up of cold storage facilities by the governments.Select the correct answer using the code given below.

Accepted Answer

Public Investment here refers to the creation of either physical infrastructure or intangible capital. Hence in this context, investment is understood as either infrastructure-related capital as given in options 2 and 6 or social capital as given in option 3. Subsidies and loan waivers are not investments. Hence option 1 is not correct (There is scope for elimination here). Hence option (c) is the correct answer. Similarly, option 4 (subsidy) and 5 are not correct.