The correct option is 2 only.
Explanation
The question pertains to the state of the Indian agricultural sector during the British colonial period (on the eve of independence). During this era, the agricultural sector was characterized by stagnation, low productivity, and exploitative land settlement systems.
Statement-wise Analysis:
- Statement 1 is Incorrect. The agricultural sector during the colonial period did not experience high productivity. On the contrary, it was marked by stagnation and unusually low levels of aggregate productivity. There was negligible use of modern technology or fertilizers.
- Statement 2 is Correct. Under the prevailing land settlement systems, particularly the Zamindari system, the profits from agriculture largely went to the zamindars (landlords) rather than the cultivators. Consequently, a vast section of tenants, sharecroppers, and small farmers possessed neither the financial resources nor the incentives to invest in agricultural improvements.
- Statement 3 is Incorrect. Indian agriculture faced a severe lack of investment during this period. There was minimal capital formation or public investment in essential infrastructure such as terracing, flood-control measures, drainage systems, or the desalination of soil.
Key Takeaway:
Indian agriculture under British rule was defined by low productivity and stagnation, primarily driven by exploitative land tenure systems and a distinct lack of investment in technology and infrastructure.