Question
Q88.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 grow in non -farm economy increased.
4. 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 only
Answer: B
Detailed Explanation
In NITI Aayog’s paper “Changing Structure of Rural Economy of India Implications for Employment and Growth 2017”, following observations were made:
• The absolute level of income per worker i.e. worker productivity has increased for both rural and urban areas. For rural areas it was Rs. 37273 in 2004 -05 and Rs. 101755 in 2011 -12, while for urban areas it was Rs. 120419 in 2004 -05 and Rs. 282515 in 2011 -12.
• As per 2011 Census, 68.8% of India’s population and 72.4% of workforce resided in rural areas. However, steady transition to urbanization over the years has led to a decline in the rural share in the workforce, from 77.8% in 1993 -94 to 70.9% in 2011 -12.
• About two-third of rural income is now generated in non -agricultural activities. Non -farm economy has increased in rural areas. The share of agriculture in rural economy has decreased from 57% in 1993 -94 to 39% in 2011 -12.
• After 2004 -05, the rural areas have witnessed negative growth in employment in spite of high growth in output. The growth rate of rural employment was 1.45% during 1994 -2005, which fell to -0.28% between 2005 -12.
