With reference to the Indian Economy after the 1991 economic liberalization, consider the following statements

Question

With reference to the Indian Economy after the 1991 economic liberalization, consider the following statements:
1. Worker productivity (rupees 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 the non-farm economy increased.
4. The growth rate in rural employment decreased.
Which of the statements given above is/are correct?

Accepted Answer

Following the 1991 liberalization, the Indian economy witnessed structural shifts. Rural areas experienced a notable increase in the growth of the non-farm sector as industrial and service activities expanded beyond urban centers, absorbing some of the rural labor force. Concurrently, the pace of new job creation in rural employment slowed down, indicating a deceleration in the growth of traditional rural occupations and a potential rise in disguised unemployment or a shift towards less productive employment.