UPSC | Prelims GS | 2026
Which one of the following best describes premature deindustrialisation, a concept discussed in the editorial on global unemployment?
- Manufacturing employment declines before a developing economy reaches the income levels at which industrial economies historically deindustrialised
- Agriculture expands after a country becomes a high-income service economy
- A temporary fall in tourism caused by a natural disaster
- 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