Correct Option (C)
The correct assumptions are 2 and 3.
- Statement 2 is valid: The passage explicitly states that a significant change in the relative price scenario "in favour of agriculture" led to a boost in "private investments in agriculture by more than 50%." This directly supports the assumption that a good price incentive can stimulate agricultural investments.
- Statement 3 is valid: The passage discusses India's slow structural and rural transformation and the need for accelerated poverty reduction through agricultural growth. While not directly stated, the context of improving agricultural incomes and driving transformation, especially in a scenario of small and marginal farms, implies a need to move towards higher-value agriculture. Building value chains for high-value agri-products such as livestock and horticulture is a recognized strategy for enhancing farmer incomes and fostering structural transformation in the agricultural sector, aligning with the broader theme of the passage.
Incorrect Options:
- Statement 1 is invalid: The passage indicates that India's transformation was "slow" due to its predominantly small and marginal farms, but it does not assert that such transformation is "impossible" under these conditions. The term "impossible" is an overstatement not supported by the text.
- Statement 4 is invalid: The passage attributes accelerated poverty reduction during 2005-2012 partly to "rising global prices" which changed the relative price scenario. However, it does not claim that higher global prices are "essential" or the sole determinant for India's poverty reduction. The text also highlights the role of boosted private investments in agriculture, increased agri-GDP growth, and rising real farm wages as contributing factors. Therefore, stating it as "essential" is an overgeneralization not fully supported by the passage.