Question

According to the supporters of the Foreign Direct Investment policy, 2012, which of the following is least likely to happen if foreign supermarkets purchase from India?

• A. Increase in demand for agricultural produce
• B. Increase in agricultural output
• C. Decrease in demand for labour
• D. Decrease in agricultural income

Answer 1

Answer: (C), (D)

Decrease in agricultural income

Supporters of the Foreign Direct Investment policy, 2012 believe that foreign supermarkets will increase the demand for domestic agricultural products. Increase in demand will increase the agricultural output, which in turn, will increase the demand for labour. Also, this will increase the income generated by the agricultural sector in the long run.