Prelims: Indian polity and economy, including Bihar · 38 में से Unit 26
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.
- 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- The three farm laws of 2020 were repealed in 2021.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
हर उत्तर अपनी परीक्षा की शब्द सीमा में लिखें। ढांचे के लिए ऊपर के Notes देखें: भूमिका, तथ्यों और उदाहरणों के साथ मुख्य भाग, और छोटा आगे का रास्ता।
- MSP procurement has favoured a few crops and states. How can price support be made fairer and more sustainable? (250 words)
- Why has India's manufacturing share in GDP stayed around 15–17% despite reforms? (150 words)
- Compare the EPC, BOT and Hybrid Annuity models of infrastructure financing. (150 words)