2015 · Q60
Private investment in Indian agriculture is mostly on labour-saving mechanization. This could be a response to
General KnowledgeIndian Economy
- Arising productivity of agricultural sector
- Brising inequality in agriculture
- Crising wages and tighter labour market
- Ddebt write-off by the Government
Explanation
When rural wages rise and the farm labour market tightens, farmers substitute capital for labour, investing in tractors, harvesters, and other labour-saving machines. This is the classic economic response to costlier labour — not a result of rising productivity, inequality, or debt write-offs. Hence C.