Q. With reference to the Farm Distress Index (FDI), consider the following statements:
1.The FDI is designed to function as an early warning system for farmer distress, offering alerts up to three months in advance.
2.It includes psychological and environmental factors among its key parameters.
3.The FDI has been fully implemented across all districts in India since 2022.
Which of the statements given above is/are correct?
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A
Notes:

Explanation:

  • The Farm Distress Index (FDI) is intended as an early warning system, capable of providing alerts three months in advance to stakeholders for preventive action.
  • FDI includes seven key parameters, among which are psychological factors and exposure to risk (which includes climate variability), making it a multidimensional tool.
  • FDI has not been implemented nationwide. As per the PIB release, it was a pilot study conducted only in Telangana and Andhra Pradesh during 2020–21 and 2021–22. Hence, it is not yet available for the entire country.

Source- 12th NCERT: Economics: Macroeconomics and TMH Indian Economy by Ramesh Singh

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