UPSC CSE Prelims 2020
Which of the statements given above is/are correct?
Statement 3 is correct. Following the 1991 economic liberalization, the non-farm economy in rural areas, encompassing sectors like construction, trade, and transport, experienced an accelerated growth. This indicated a diversification away from traditional agricultural activities.
Statement 4 is correct. Despite the growth in the non-farm sector, the overall growth rate in rural employment decreased. This trend can be attributed to factors such as increasing mechanization in agriculture and a structural shift in the workforce, leading to slower job creation in rural settings.
Statement 1 is incorrect. Post-1991, worker productivity per worker (at 2004–05 prices) generally increased across both urban and rural areas. Rural productivity did not decrease; rather, it showed an upward trend, reflecting improvements in efficiency and technology.
Statement 2 is incorrect. The percentage share of rural areas in the total workforce steadily decreased after 1991. This was primarily due to rural-to-urban migration and the increasing absorption of labor into urban-based industrial and service sectors, signifying a structural transformation of the economy.