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Question
What has been the impact of globalisation on the Indian agricultural sector, especially the small farmer?
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Solution
Globalisation has affected Indian agriculture in both positive and negative ways. Farmers have gained access to wider markets, new technology and improved farming methods. However, small farmers often face serious difficulties because they have limited resources and cannot easily compete in the global market.
Free-trade policies may allow cheaper agricultural products from other countries to enter India, which can reduce the prices received by local farmers. Small farmers may also need to buy costly seeds, fertilisers and other inputs, increasing their dependence on loans. If crops fail or market prices fall, repayment becomes difficult and indebtedness increases. Thus, globalisation has created new opportunities, but it has also increased economic pressure and competition for many small farmers.
