With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:
1. Worker productivity (Rupee 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?
Explanation
Statement 1 is incorrect: Following 1991 economic reforms, absolute worker productivity (at constant prices) increased across both urban and rural areas, bolstered by rising agricultural productivity and the expansion of rural services and manufacturing.
Statement 2 is incorrect: As rural-to-urban economic migration accelerated and urbanization expanded, the percentage share of rural areas in the national workforce steadily declined (dropping from over 80% in the 1980s to around 70% by 2011-12).
Statement 3 is correct: Post-reform structural transformation saw the rural non-farm economy expand rapidly, led by rural construction, transport, trade, and agro-processing industries.
Statement 4 is correct: Despite output expansion, the decadal rate of employment generation in rural areas decelerated, resulting in a decreased growth rate of rural employment (often termed jobless growth in agriculture).
Therefore, statements 3 and 4 are correct — Option B.