Prelims Paper I: Economic and sustainable development · Unit 23 of 38

Agriculture, Food Security, Industry and Infrastructure

Farm sector issues, MSP and procurement, PDS, subsidies, land reforms, food processing; industrial policy, MSMEs, Make in India; infrastructure and investment models.

Syllabus lines this unit covers
  • Major crops and cropping patterns, irrigation, transport and marketing of agricultural produce, e-technology for farmers
  • Direct and indirect farm subsidies and minimum support prices; Public Distribution System; buffer stocks and food security
  • Food processing and related industries; land reforms
  • Industrial policy and changes; infrastructure: energy, ports, roads, airports, railways; investment models

Agriculture: the big picture

  • Agriculture provides about 16–18% of GVA but about 45% of jobs. Average landholding is 1.08 ha (Agriculture Census 2015–16), and 86% of holdings are small or marginal.
  • Problems:
    • fragmented holdings;
    • dependence on the monsoon;
    • low productivity;
    • poor markets and storage;
    • indebtedness;
    • groundwater depletion (Punjab, Haryana);
    • climate risk.
  • Green Revolution:
    • Positives: food self-sufficiency.
    • Negatives: regional (Punjab, Haryana, western UP) and crop (wheat, rice) bias; soil and water damage.
    • An "Evergreen Revolution" (Swaminathan) is needed.

Prices, markets and support

  • MSP:
    • The CACP recommends MSP for 22 crops. The Centre also fixes the FRP for sugarcane.
    • Since 2018–19, MSP is at least 1.5 × A2+FL cost (A2 = paid-out cost, FL = family labour).
    • Procurement is mostly of rice and wheat, and mostly in a few states.
  • Marketing:
    • APMC mandis suffer from cartels and commissions.
    • e-NAM (2016) links mandis online.
    • Bihar abolished its APMC Act in 2006.
    • The three farm laws of 2020 were repealed in 2021.
  • Support and inputs:
    • PM-KISAN (2019): ₹6,000 a year.
    • PMFBY (2016): crop insurance.
    • Soil Health Card.
    • PMKSY: irrigation.
    • KCC credit.
    • FPOs: the target of 10,000 new FPOs was met.
  • Fertiliser subsidy:
    • urea has a fixed price;
    • P&K fertilisers get Nutrient Based Subsidy (2010);
    • neem-coated urea;
    • nano urea.
  • Food processing:
    • Low processing levels: less than 10% of fruits and vegetables are processed.
    • PM Kisan SAMPADA, PMFME (micro units; one district one product) and mega food parks.
    • Bihar's makhana got a Makhana Board (Budget 2025–26).
  • Allied sectors: dairy (Operation Flood, Kurien, NDDB; India is no. 1 in milk), fisheries (PM Matsya Sampada Yojana) and animal husbandry.
  • Digital agriculture: Agri Stack (Digital Public Infrastructure for farmers: farmer IDs, a crop survey), drones (Namo Drone Didi) and the Kisan Rin portal.

Food security and PDS

  • Buffer stocks are held by the FCI (1965) at the Central Pool, with norms for each quarter.
  • Targeted PDS (1997); the NFSA 2013 (75% rural, 50% urban; 5 kg per person; AAY 35 kg per family).
  • Grain is free under PMGKAY for 5 years from 1 January 2024.
  • One Nation One Ration Card gives national portability.
  • Leakages are reduced by Aadhaar seeding, ePoS machines and automation.

Land reforms

  • Abolition of intermediaries (zamindari).
  • Tenancy reform: security of tenure and regulated rent.
  • Ceiling on holdings.
  • Consolidation (chakbandi).
  • Records: DILRMP, now DILRMP and SVAMITVA (drone mapping of village homes).
  • Bihar: the D. Bandyopadhyay Commission (2008) on sharecroppers was not implemented. A land survey (2024–26) is under way.
  • Jharkhand: the CNT and SPT Acts restrict the transfer of tribal land (see the Jharkhand laws unit).

Industry

  • Industrial policies:
    • the IPR 1948 and IPR 1956: the public sector in the "commanding heights";
    • 1977: small industry and district industries centres;
    • 1991 New Industrial Policy: abolished licensing except for a few industries, opened up to FDI, reduced public sector reservation and amended the MRTP Act.
  • Public sector: PSU disinvestment and strategic sales (Air India to the Tata group, 2022). Maharatna and Navratna status.
  • MSMEs:
    • About 30% of GDP, about 45% of exports and more than 25 crore jobs.
    • They are classified by investment and turnover: micro is up to ₹2.5 crore investment and ₹10 crore turnover (Budget 2025–26).
    • Udyam registration.
    • Credit guarantees through the CGTMSE.
  • Initiatives:
    • Make in India (2014);
    • PLI schemes (2020–21);
    • Start-up India (2016);
    • the National Manufacturing Mission (2025);
    • semiconductor fabs (ISM);
    • industrial corridors (DMIC; the Amritsar–Kolkata corridor passes through Bihar and Jharkhand).
  • Index of Eight Core Industries: coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. They make up about 40% of the IIP. Refinery products have the highest weight.

Infrastructure and investment models

  • National Infrastructure Pipeline (2019, ₹111 lakh crore).
  • PM Gati Shakti National Master Plan (2021) for integrated planning.
  • National Logistics Policy (2022).
  • Investment models:
Model Who finances Who bears risk
EPC (engineering, procurement, construction) Government Government bears traffic risk; contractor only builds
BOT (build–operate–transfer), toll Private developer Developer bears traffic risk, collects toll
BOT annuity Private Government pays fixed annuities
Hybrid Annuity Model (2016) 40% government during construction, 60% developer Toll risk with government
TOT (toll–operate–transfer) Private pays upfront to operate built road Asset monetisation
InvIT / REIT Investors Monetising operational assets
  • Energy: see the economic geography unit. Key items:
    • One Sun One World One Grid;
    • the Green Hydrogen Mission (2023);
    • PM Surya Ghar rooftop solar (2024, 1 crore homes).
  • Bihar and Jharkhand projects:
    • the Eastern DFC, which ends at Sonnagar;
    • NW-1 terminals at Sahibganj and Kalughat (Patna);
    • AIIMS Darbhanga;
    • Patna Metro;
    • Purnea, Darbhanga and Deoghar airports.

Exam tip: In Mains, use the "problem → reason → scheme → gap → way forward" structure for farm answers. Back it with one data point (landholding, MSP coverage, groundwater) and one state example: Bihar's makhana and APMC; Jharkhand's lac and tasar.

Mains practice

Write each answer in the word limit your exam sets. Use the notes above for the structure: introduction, body with facts and examples, a short way forward.

  1. MSP procurement has favoured a few crops and states. How can price support be made fairer and more sustainable? (250 words)
  2. Why has India's manufacturing share in GDP stayed around 15–17% despite reforms? (150 words)
  3. Compare the EPC, BOT and Hybrid Annuity models of infrastructure financing. (150 words)

Practice: Agriculture, Food Security, Industry and Infrastructure

10 questions on this unit, marked the JPSC JPSC CCSE way. Answers and explanations appear after you submit.

Questions
10
Time
8 min
Right answer
+1
Wrong answer
No minus

The clock starts when you press Start. Unanswered questions score zero. You can mark a question for review and come back to it, as in the real exam.