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 ?

States that after 1991 liberalisation the services sector became the fastest growing part of the economy and now contributes a large share of GDP while manufacturing's share is much smaller.

A student could combine this with the fact that services typically generate higher output per worker than low-productivity manufacturing/agriculture to suspect urban (service-dominated) productivity rose; then check urban GDP and urban worker counts to compute rupees per worker.

Notes that globalisation benefited well-off urban consumers with better choices and higher standards of living, implying rising urban incomes and consumption.

Use this as a clue that urban per-worker output or wages may have increased post-liberalisation and then compare urban nominal/real income series or urban GDP per worker (converted to 2004–05 prices).

Reports that liberalisation accelerated GDP growth (to ~6–8%) and transformed India toward a services-dominated economy (services ~55% of GDP), while also noting many people were left out.

A student could infer rising aggregate output (numerator) and, if urban employment growth was slower than output growth, expect higher urban output per worker; they would then compare urban employment and value-added time series to test the statement.

Gives evidence of falling national poverty rates and higher overall growth after 1991, indicating rising real incomes for many (aggregate welfare/productivity signals).

Combine national per-capita/poverty improvements with urban bias of globalization to hypothesize stronger urban productivity gains, then verify by calculating urban rupees-per-worker from urban GDP and urban workforce data at 2004–05 prices.

States that liberalisation produced regional disparities with concentration of investment in particular states (many of which contain large urban centres).

A student could use this to argue productivity gains were likely concentrated in specific urban areas (states listed), so they should check urban productivity trends at state/city level rather than only national urban aggregates.