With reference to the Indian economy after the 1991 economic liberalization, consider the following statements : 1. Worker productivity per worker at 2004 05 prices) increased in urban areas while it decreased in rural areas. 2. The percentage share of ru

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Q: (IAS/2020)
With reference to the Indian economy after the 1991 economic liberalization, consider the following statements :
1. Worker productivity 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.

Which of the statements given above is/are correct ?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,76,77,16,76,43,18

keywords: 

{'indian economy': [0, 3, 3, 5], 'rural employment': [0, 0, 0, 1], 'growth rate': [1, 1, 2, 2], 'rural areas': [1, 0, 0, 0], 'economic liberalization': [0, 1, 0, 1], 'growth': [1, 1, 1, 0], 'worker productivity': [0, 0, 0, 1], 'percentage share': [0, 0, 1, 1], 'urban areas': [0, 0, 0, 1], 'workforce': [0, 0, 1, 1]}

The correct answer refers to statements 3 and 4.

Statement 1 suggests that worker productivity (per worker at 2004 — 05 prices) increased only in urban areas while it decreased in rural areas after the 1991 economic liberalization in India. This is false; both urban and rural areas saw an increase in worker productivity due to various factors such as industrial growth and technological advancements.

Statement 2 claims that the percentage share of rural areas in the workforce steadily increased post-liberalization. This is incorrect as rural to urban migration increased during this period, resulting in a decrease in the share of rural areas in the workforce.

Statement 3 is correct. After the 1991 economic liberalization, non-farm economy (industries and services not related to agriculture) in rural areas did see substantial growth, as it provided alternative employment opportunities to the rural workforce.

Statement 4 is accurate, the growth rate in rural employment decreased after the liberalization due to factors such as mechanization of farming and increase in non-farm jobs as mentioned in Statement 3.

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