Q58. With reference to the Indian Economy after the 1991 economic liberalization, consider the following statements:
- Worker productivity (rupees 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 the nonfarm economy increased.
- The growth rate in rural employment decreased.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 and 4 only
(c) 3 only
(d) 1, 2 and 4
Answer: B
- Statement 1 is not correct: Worker productivity has comparatively increased both in the urban as well as rural areas. As per the 2017 report of NITI Aayog, in rural areas, worker productivity was Rs. 37,273 per worker in 2004-05 and it increased to Rs. 1,01,755 per worker in 2011-12. While, in urban areas, it increased from Rs. 1,20,419 per worker in 2004-05 to Rs. 2,82,515 per worker in 2011-12.
- Statement 2 is not correct: The rural share in the total workforce declined steadily from 76.1% in 1999-2000 to 70.9% in 2011 12.
- Statement 3 is correct: The share of the manufacturing and service sector has increased in the Rural NDP, taking the place of the decline in the share of contribution of the agricultural sector in the Rural NDP.
- Statement 4 is correct: Rural employment showed 2.16% annual growth rate during the pre-reform period, which decelerated in the post-reform period to 1.45% and turned negative (–0.28%) in the period of economic acceleration.
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