With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:
- Worker productivity (Rs. per worker at 2004 — 05 prices) increased in urban areas while it decreased in rural areas.
- The percentage share of rural areas in the workforce steadily increased.
- In rural areas, the growth in non-farm economy increased.
- The growth rate in rural employment decreased.
Which of the statements given above is/are Correct?
[UPSC Civil Services Exam – 2020 Prelims]
(a) 1 and 2 only
(b) 3 and 4 only
(c) 3 only
(d) 1, 2 and 4 only
Answer: (b)
Explanation:
| Year | Economy | Workforce |
| 2011-12 | 46.9 | 70.9 |
| 2004-05 | 48.1 | 74.6 |
| 1999-00 | 48.1 | 76.1 |
| 1993-94 | 54.3 | 77.8 |
- The growth rate of rural employment decreased (becoming negative in 2005-12). Hence 4 is correct.
- Steady transition to urbanization over the years has led to a decline in the rural share in the workforce, from 77.8% in 1993 -94 to 70.9% in 2011 -12. Hence statement 2 is incorrect.
