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asked in Economics by (8k points)
How would income and employment increase if farmers are provided with irrigation and transport?

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answered by (14.7k points)

Irrigation facilities will help in increasing the farm output. Marketing facilities will help the farmers in selling their produce at fair prices. Thus, the income of farmers will increase. Improvement of irrigation facilities will be possible by construction of canals or digging of wells. New employment will be generated because of this. There will be increased demand for farm equipments and many people can earn by repairing those equipments. A market will help in opening up of new shops which would further boost employment. 

(i) If a new dam is constructed and canals are
dug to irrigate farms. This could lead to a .
lot of employment generation within the agricultural sector itself reducing the problem of underemployment.
(ii) With assured means of irrigation production will increase.
(iii) Farmers would like to sell the surplus in the market.
(iv) For this they may be required to transport their products to a nearby town. If the government invests some money in transportation and storage of crops, or makes for better rural roads this activity can provide productive employment to not just farmers but also others such as those in services like transport or trade.

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