The key concerns regarding the subsidizing process still plaguing the system are as follows:
Subsidies do not reach the marginalized farmers
The marginalized farmers, the main target audience for the government to come up with subsidies in the first place are found wanting of the same. Effectively, the more well off farmers end up taking more than their fair share.
The fiscal burden on the government
The government fails to recover its costs because of taxation issues and is thus led to borrow from other sources. Ineffective taxation policies end up taking their toll on the government’s developmental plans.
The APMC Act
The APMC Act was set up by the government, as a means to improve the efficacy of the process of the farmers getting their rightful price due to them, through the establishment of middlemen acting as links to the chain. Sadly though, their main prerogative was rendered ineffective, due to their own middlemen.
The APMC act established mandis, where farmers auction their produce. The presence of middlemen, effectively multiplied prices at each level which thus led to higher prices and lower profits for the farmers.
Q.4. Discuss the role played by Indian diaspora in India’s diplomatic efforts oversease.
Answer. India is the leading country of origin of international migrants in 2020 with a 17.5 million strong diaspora, according to new estimates released by the United Nations. Diaspora help country politically, socially and most importantly economically. India is one of the major recipients of remittances. However, besides remittances, diaspora help the country economically in various other ways.
Representation across the globe
Diasporas are symbol of a nation’s pride and represent their country internationally. They help in building country’s value internationally through their huge success stories.
Many emigrants make huge investments into their home countries in domestic financial, real estates, services and technological sectors helping in huge inflow of capitals that boost local economy and create huge jobs.
One of the greatest economic contribution of Indian diaspora has been in terms of remittances. Remittances make an invaluable contribution by aiding in socio-economic development, poverty reduction and changes in consumption behaviour in rural areas.
Assistence in technological advancement
Diasporas are mostly based in foreign countries which are developed and hence are technologically advance and rich in innovations. They help in bringing these technology and innovations to their country of origin through investment and collaborations.
An important advantage in having a large emigrant group is furthering of nation’s diplomacy through people to people contact. Indo-US Civil Nuclear Deal is a case in point, as ethnic Indians in United States successfully lobbied for clinching of the N-deal.
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