(i) "Every coin has two sides — debate over farm subsidies is one such classic example of the same." Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies. (ii) "Suez Canal was used as a highway between India and Britain." Justify the given statement with valid arguments. (i) "India's inward looking trade policy during the post independence period was well supported by various tariff and non-tariff barriers." Do you agree with the given statement ? Justify your answer with valid arguments. (ii) "Navratna policy has facilitated the maintenance, promotion and disinvestment of Public Sector Undertakings (PSUs)." Justify the given statement with valid explanation.

Question

Accepted Answer

Farm subsidies debate - two sides:

Arguments in favour:
1. Food security for consumers
2. Support for small farmers
3. Agricultural growth
4. Rural employment
5. Social safety net

Arguments against:
1. Fiscal burden on government
2. Market distortion
3. Environmental degradation
4. Inefficient allocation
5. Benefits large farmers more

Justification:
- Subsidies ensure affordable food
- Protect farmers from market fluctuations
- But create fiscal deficit
- May not reach intended beneficiaries
- Need reforms for better targeting

The debate continues on finding the right balance between farmer support and fiscal prudence.