UPSC CSE Prelims
Question 43
With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:
- Worker productivity 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 non-farm economy increased.
- The growth rate in rural employment decreased.
Which of the statements given above is/are correct?
View correct answer and explanation
Correct answer: B
Correct Option: B (3 & 4 only)
Explanation: Since liberalisation, rural non-farm activities expanded while rural employment growth slowed; the claims of continuously increasing rural workforce share and declining rural productivity are not sustained by the historical data.
Statement / Pair / Item-wise Analysis:
1. Incorrect - Rural labour productivity did not simply fall across the post-reform period as stated.
2. Incorrect - The rural share of India’s workforce did not steadily increase; structural shifts moved employment towards urban areas.
3. Correct - Non-farm rural economic activities and employment diversified.
4. Correct - Growth of rural employment slowed in important post-reform periods.
Option-wise Analysis:
A. Incorrect-includes incorrect item 1 (Rural labour productivity did not simply fall across the post-reform period as stated); includes incorrect item 2 (The rural share of India’s workforce did not steadily increase; structural shifts moved employment towards urban areas); omits correct item 3 (Non-farm rural economic activities and employment diversified); omits correct item 4 (Growth of rural employment slowed in important post-reform periods).
B. Correct-includes all and only valid statements/items 3, 4.
C. Incorrect-omits correct item 4 (Growth of rural employment slowed in important post-reform periods).
D. Incorrect-includes incorrect item 1 (Rural labour productivity did not simply fall across the post-reform period as stated); includes incorrect item 2 (The rural share of India’s workforce did not steadily increase; structural shifts moved employment towards urban areas); omits correct item 3 (Non-farm rural economic activities and employment diversified).
Review note: Period choice and constant-price base are important for interpreting time-series claims.