Advertisements
Advertisements
Question
Assertion (A): Indian rural credit system was significantly transformed with the implementation of technological reforms in agriculture sector.
Reason (R): Green Revolution led to the diversification of the portfolio of rural credit towards production-oriented lending.
Options
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.
Advertisements
Solution
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Explanation:
The Indian rural credit system underwent significant transformation during the green revolution, as new technology and high-yield crops increased the demand for production-based loans. As a result, rural credit moved from consumption to production-oriented lending, supporting Reason (R) as the correct explanation for Assertion (A).
