UPSC Previous Year Question | Prelims GS | 2020

With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: 1. Worker productivity (Rs per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas. 2. The percentage share of rural areas in the workforce steadily increased. 3. In rural areas, the growth in non-farm economy increased. 4. The growth rate in rural employment decreased.

  1. 1 and 2 only
  2. 3 and 4 only
  3. 3 only
  4. 1, 2 and 4 only

Answer

Correct Answer

3 and 4 only

Explanation

After 1991, the non-farm rural economy grew and the growth rate of rural employment declined. Rural worker productivity also rose and the rural share in the workforce did not increase steadily, so statements 1 and 2 are wrong.

Topics: economy, indian economy - structure & development, post-1991 economic reforms, productivity & non-farm economy, rural employment