Discuss briefly the rationale behind adopting 'modernization' as a planning objective for the Indian Economy. "Farm subsidies put a huge burden on the government finances, but are necessary for the poor and marginal farmers." Justify the given statement.

Question

Accepted Answer

**Rationale behind adopting 'Modernization' as planning objective:**

1. **New Technology:** Modernization aims to increase production through use of new technology. Example: HYV seeds in agriculture, new machinery in industry.

2. **Change in Social Outlook:** Modernization requires change in social outlook like gender empowerment and equal rights for women.

3. **Structural Changes:** Involves shift in sectoral composition of production and diversification of activities.

4. **Institutional Innovations:** Advancement of technology and institutional innovations to transform feudal economy into modern economy.

**Farm Subsidies:**
- Put huge burden on government finances
- But necessary for poverty alleviation
- Help small farmers afford modern inputs
- Ensure food security
- Should be targeted towards small and marginal farmers