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 growth in the non-farm economy increased. 4. The growth rate in rural employment decreased. Which of the statements given above is/are correct?

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 growth in the non-farm economy increased. 4. The growth rate in rural employment decreased. Which of the statements given above is/are correct? Correct Answer 3 and 4 only

The correct answer is 3 and 4 only.

  • As per NITI Ayog's report, worker productivity has increased for both rural and urban areas. 
  • Consider the data shown below-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. Hence statement 1 is incorrect.
  • 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. Hence statement 2 is incorrect.
  • The rural share in the total workforce declined steadily from 76.1 per cent in 1999-00 to 70.9 per cent in 2011-12.
  • As evident from the table below, the share of the non-farm economy increased in rural areas.
    • Share of rural areas in total NDP and workforce (per cent):
Year Economy Workforce
2011-12   46.9 70.9
2004-05  48.1  74.6
1999-00   48.1 76.1
1993-94  54.3  77.8
  • Hence 3 is correct.
  • Also, the growth rate of rural employment decreased (becoming negative in 2005-12). Hence 4 is correct.

Related Questions

A statement is given below in the question followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Hindustan Unilever and Nestlé plan to selectively increase prices of their products to take into account higher crude oil and petrol costs, the rupee’s depreciation against the dollar and more expensive commodities such as wheat. If crude remains where it is and if the rupee has depreciated, of course, there are headwinds as far as costs are concerned. I. Nestlé India’s logistics providers are looking to renegotiate rates after record-high petrol and diesel prices. Nestlé declined to comment on when and by how much prices would increase.  II. Nestlé commented that HUL had dropped prices in November after the Goods & Services Tax was introduced last year and an increase in prices now would likely not hurt consumers.  III. Petrol prices have crossed Rs 90 a litre in Mumbai on increasing global prices of crude oil, of which India is a net importer, further impacted by the falling rupee. Crude derivatives, which are key inputs for FMCG companies, and petroleum derivatives used in packaging material including bottles and tubes, have also become more expensive.