Consider the following statements: Statement-I: Since the LPG (Liberalization, Privatization, and Globalization) reforms in India, agricultural GDP has grown at a slower pace compared to the overall GDP. Statement-II: Economic reforms in India encouraged a shift from cash crops to food grains after 1991. Which one of the following is correct in respect of the above statements? |ForumIAS

Q. Consider the following statements:
Statement-I: Since the LPG (Liberalization, Privatization, and Globalization) reforms in India, agricultural GDP has grown at a slower pace compared to the overall GDP.
Statement-II: Economic reforms in India encouraged a shift from cash crops to food grains after 1991.
Which one of the following is correct in respect of the above statements?

[A] Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

[B] Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

[C] Statement-I is correct but Statement-II is incorrect

[D] Statement-I is incorrect but Statement-II is correct

Answer: C

Notes:

Explanation –

Statement-I is correct because, following the LPG reforms, India’s agricultural GDP has grown at a slower pace compared to the overall GDP. Since 1991-92, India’s overall GDP has grown at an average rate of 6.1% per year, while agricultural GDP has only grown at 3.3%.

Statement-II is incorrect as the economic reforms encouraged a shift towards high-value, export-oriented cash crops rather than food grains.

Source: The Hindu

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