With reference to the Indian economy after the 1991 economic liberalisation, 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 age 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?

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YESPYQ · Accepted Answer

Correct answer: 3 and 4 only. In a report “Changing Structure of Rural Economy of India: Implications for Employment and Growth 2017,” pub- lished by NITI Aayog, following observations were made : Statement 1 is incorrect : Both rural and urban regions have seen an improvement in worker productivity as well as the abso- lute level of income per worker. 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. Indian Economy 241 Statement 2 is incorrect : As per the 2011 Census, 68.8% of India’s population and 72.4% of the workforce resided in rural areas. However, the steady transition to urbanisation over the years has led to a decline in the rural share of the workforce, from 77.8% in 1993 -94 to 70.9% in 2011 -12. Statement 3 is correct : About two-thirds of rural income is now generated in non -agricultural activities. Non-farm economy has increased in rural areas. The share of agriculture in the rural economy has decreased from 57% in 1993 -94 to 39% in 2011 -12. Statement 4 is correc

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