Read the following passage and answer the item that follows. Your answer to this item should be based on the…
Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.
Passage: In India, agriculture still engages about half of its workforce, and about 85 per cent of its farms are small and marginal. Compared to China and Vietnam, which have experienced fast structural and rural transformation, India's story is of slow transformation. As a result, poverty reduction in India was at a much slower pace during 1988-2014. India's poverty reduction was slow during 1988-2005, but during 2005-2012, it accelerated dramatically—almost three times faster. Research reveals that the relative price scenario changed significantly in favour of agriculture in the wake of rising global prices. This boosted private investments in agriculture by more than 50%. As a result, agri-GDP growth touched 4.1% during 2007-2012 as against 2.4% during 2002-2007. The net surplus of agri-trade touched USD 25 billion in 2013-2014; real farm wages rose by 7% per annum. All this led to unprecedented fall in poverty.
Which one of the following statements best reflects the critical message of the passage?
India should create large-scale off-farm rural employment to reduce poverty in the near future.
India should create a large number of farmer producer companies.
Private investment in agriculture should be given priority over public investment.
Inclusive agricultural growth is key to reduce poverty in the near future.
Solution
The passage shows that agricultural transformation, investment and growth led to unprecedented poverty reduction. The critical message is that inclusive agricultural growth is the key to reducing poverty. Options A, B and C focus on narrower or unsupported ideas.