In India, which of the following can be considered as public investment in agriculture?
1. Fixing Minimum Support Price for agricultural produce of all crops
2. Computerization of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans by the banking system
6. Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
Explanation
In macroeconomic accounting, public investment (Gross Capital Formation) refers to government capital expenditures that create tangible infrastructure, build durable productive assets, or augment human/social capital capacity:
– 2. Computerization of PACS (Capital Investment): Upgrades digital infrastructure and administrative transparency in grassroots credit delivery.
– 3. Social capital development (Capital Investment): Enhances agricultural education, farmer collectives (FPOs), capacity building, and knowledge dissemination, bolstering long-term human capital.
– 6. Setting up cold storage facilities (Capital Investment): Creates physical post-harvest infrastructure reducing crop perishability and supply-chain losses.
– 1, 4, and 5 (Revenue Subsidies/Transfers – Not Capital Investment): Fixing MSPs, distributing free power, and waiving farm loans are revenue subsidies and fiscal transfer payments that provide immediate income support without generating durable capital assets.
Hence, only 2, 3, and 6 constitute public investment — Option C.