UPSC | Prelims GS | 2026

Which one of the following best describes premature deindustrialisation, a concept discussed in the editorial on global unemployment?

  1. Manufacturing employment declines before a developing economy reaches the income levels at which industrial economies historically deindustrialised
  2. Agriculture expands after a country becomes a high-income service economy
  3. A temporary fall in tourism caused by a natural disaster
  4. The replacement of all domestic production by public-sector enterprises

Answer

Correct Answer

Manufacturing employment declines before a developing economy reaches the income levels at which industrial economies historically deindustrialised

Explanation

Option A is correct because automation and reduced labour intensity can shrink manufacturing employment before developing countries complete the traditional industrial transition. Option B reverses the usual structural-transformation pattern. Option C describes a sectoral shock, not a long-term development process. Option D is an institutional ownership claim and does not define premature deindustrialisation.

Topics: development, economy, premature deindustrialisation, structural transformation