{"id":91767,"date":"2025-06-01T11:05:16","date_gmt":"2025-06-01T11:05:16","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91767"},"modified":"2025-06-01T11:05:16","modified_gmt":"2025-06-01T11:05:16","slug":"with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/","title":{"rendered":"With reference to the Indian economy after the 1991 economic liberaliz"},"content":{"rendered":"<p>With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:<\/p>\n<ul>\n<li>1. Worker productivity (\u20b9 per worker at 2004 \u2013 05 prices) increased in urban areas while it decreased in rural areas.<\/li>\n<li>2. The percentage share of rural areas in the workforce steadily increased.<\/li>\n<li>3. In rural areas, the growth in non-farm economy increased.<\/li>\n<li>4. The growth rate in rural employment decreased.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct ?<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;3 and 4 only&#8221; option3=&#8221;3 only&#8221; option4=&#8221;1, 2 and 4 only&#8221; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2020<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2020.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2020\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nStatements 3 and 4 are correct regarding the Indian economy after the 1991 economic liberalization.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nStatement 1: While worker productivity generally increased post-1991 in India, particularly in urban-based industries and services, stating that it *decreased* in rural areas is not a universally accepted or clearly demonstrable trend across the entire rural economy. Agricultural productivity growth was uneven, but non-farm rural productivity likely increased. This statement is questionable.<br \/>\nStatement 2: Post-liberalization India has experienced increasing urbanization and migration from rural to urban areas in search of better employment opportunities. This trend typically leads to a decrease, or at least not a steady increase, in the percentage share of rural areas in the workforce. This statement is incorrect.<br \/>\nStatement 3: Economic liberalization fostered growth in non-agricultural sectors. In rural areas, this led to significant growth in the non-farm economy (manufacturing, construction, trade, services), providing alternative sources of income and employment outside traditional agriculture. This statement is correct.<br \/>\nStatement 4: The growth rate in rural employment, particularly in agriculture, slowed down significantly after 1991 compared to the pre-reform period. While the non-farm sector absorbed some labor, overall rural employment growth often lagged behind the growth in the labor force, leading to concerns about jobless growth. This statement is correct.<br \/>\n<\/section>\n<section id=\"pyq-additional_information\">\nThe post-1991 period saw structural shifts in the Indian economy, with a decline in the share of agriculture in GDP and a rise in the share of services and industry. While overall economic growth accelerated, its impact on employment generation and rural livelihoods has been a subject of debate and analysis. The growth of the rural non-farm sector and the slowdown in agricultural employment are key features of this period.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: 1. Worker productivity (\u20b9 per worker at 2004 \u2013 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 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to the Indian economy after the 1991 economic liberaliz\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/#more-91767\">Detailed Solution<span class=\"screen-reader-text\">With reference to the Indian economy after the 1991 economic liberaliz<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1288,1112],"class_list":["post-91767","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1288","tag-economic-and-social-development","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to the Indian economy after the 1991 economic liberaliz<\/title>\n<meta name=\"description\" content=\"Statements 3 and 4 are correct regarding the Indian economy after the 1991 economic liberalization. Statement 1: While worker productivity generally increased post-1991 in India, particularly in urban-based industries and services, stating that it *decreased* in rural areas is not a universally accepted or clearly demonstrable trend across the entire rural economy. Agricultural productivity growth was uneven, but non-farm rural productivity likely increased. This statement is questionable. Statement 2: Post-liberalization India has experienced increasing urbanization and migration from rural to urban areas in search of better employment opportunities. This trend typically leads to a decrease, or at least not a steady increase, in the percentage share of rural areas in the workforce. This statement is incorrect. Statement 3: Economic liberalization fostered growth in non-agricultural sectors. In rural areas, this led to significant growth in the non-farm economy (manufacturing, construction, trade, services), providing alternative sources of income and employment outside traditional agriculture. This statement is correct. Statement 4: The growth rate in rural employment, particularly in agriculture, slowed down significantly after 1991 compared to the pre-reform period. While the non-farm sector absorbed some labor, overall rural employment growth often lagged behind the growth in the labor force, leading to concerns about jobless growth. This statement is correct.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to the Indian economy after the 1991 economic liberaliz\" \/>\n<meta property=\"og:description\" content=\"Statements 3 and 4 are correct regarding the Indian economy after the 1991 economic liberalization. Statement 1: While worker productivity generally increased post-1991 in India, particularly in urban-based industries and services, stating that it *decreased* in rural areas is not a universally accepted or clearly demonstrable trend across the entire rural economy. Agricultural productivity growth was uneven, but non-farm rural productivity likely increased. This statement is questionable. Statement 2: Post-liberalization India has experienced increasing urbanization and migration from rural to urban areas in search of better employment opportunities. This trend typically leads to a decrease, or at least not a steady increase, in the percentage share of rural areas in the workforce. This statement is incorrect. Statement 3: Economic liberalization fostered growth in non-agricultural sectors. In rural areas, this led to significant growth in the non-farm economy (manufacturing, construction, trade, services), providing alternative sources of income and employment outside traditional agriculture. This statement is correct. Statement 4: The growth rate in rural employment, particularly in agriculture, slowed down significantly after 1991 compared to the pre-reform period. While the non-farm sector absorbed some labor, overall rural employment growth often lagged behind the growth in the labor force, leading to concerns about jobless growth. This statement is correct.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:05:16+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to the Indian economy after the 1991 economic liberaliz","description":"Statements 3 and 4 are correct regarding the Indian economy after the 1991 economic liberalization. Statement 1: While worker productivity generally increased post-1991 in India, particularly in urban-based industries and services, stating that it *decreased* in rural areas is not a universally accepted or clearly demonstrable trend across the entire rural economy. Agricultural productivity growth was uneven, but non-farm rural productivity likely increased. This statement is questionable. Statement 2: Post-liberalization India has experienced increasing urbanization and migration from rural to urban areas in search of better employment opportunities. This trend typically leads to a decrease, or at least not a steady increase, in the percentage share of rural areas in the workforce. This statement is incorrect. Statement 3: Economic liberalization fostered growth in non-agricultural sectors. In rural areas, this led to significant growth in the non-farm economy (manufacturing, construction, trade, services), providing alternative sources of income and employment outside traditional agriculture. This statement is correct. Statement 4: The growth rate in rural employment, particularly in agriculture, slowed down significantly after 1991 compared to the pre-reform period. While the non-farm sector absorbed some labor, overall rural employment growth often lagged behind the growth in the labor force, leading to concerns about jobless growth. This statement is correct.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/","og_locale":"en_US","og_type":"article","og_title":"With reference to the Indian economy after the 1991 economic liberaliz","og_description":"Statements 3 and 4 are correct regarding the Indian economy after the 1991 economic liberalization. Statement 1: While worker productivity generally increased post-1991 in India, particularly in urban-based industries and services, stating that it *decreased* in rural areas is not a universally accepted or clearly demonstrable trend across the entire rural economy. Agricultural productivity growth was uneven, but non-farm rural productivity likely increased. This statement is questionable. Statement 2: Post-liberalization India has experienced increasing urbanization and migration from rural to urban areas in search of better employment opportunities. This trend typically leads to a decrease, or at least not a steady increase, in the percentage share of rural areas in the workforce. This statement is incorrect. Statement 3: Economic liberalization fostered growth in non-agricultural sectors. In rural areas, this led to significant growth in the non-farm economy (manufacturing, construction, trade, services), providing alternative sources of income and employment outside traditional agriculture. This statement is correct. Statement 4: The growth rate in rural employment, particularly in agriculture, slowed down significantly after 1991 compared to the pre-reform period. While the non-farm sector absorbed some labor, overall rural employment growth often lagged behind the growth in the labor force, leading to concerns about jobless growth. This statement is correct.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:05:16+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/","name":"With reference to the Indian economy after the 1991 economic liberaliz","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:05:16+00:00","dateModified":"2025-06-01T11:05:16+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Statements 3 and 4 are correct regarding the Indian economy after the 1991 economic liberalization. Statement 1: While worker productivity generally increased post-1991 in India, particularly in urban-based industries and services, stating that it *decreased* in rural areas is not a universally accepted or clearly demonstrable trend across the entire rural economy. Agricultural productivity growth was uneven, but non-farm rural productivity likely increased. This statement is questionable. Statement 2: Post-liberalization India has experienced increasing urbanization and migration from rural to urban areas in search of better employment opportunities. This trend typically leads to a decrease, or at least not a steady increase, in the percentage share of rural areas in the workforce. This statement is incorrect. Statement 3: Economic liberalization fostered growth in non-agricultural sectors. In rural areas, this led to significant growth in the non-farm economy (manufacturing, construction, trade, services), providing alternative sources of income and employment outside traditional agriculture. This statement is correct. Statement 4: The growth rate in rural employment, particularly in agriculture, slowed down significantly after 1991 compared to the pre-reform period. While the non-farm sector absorbed some labor, overall rural employment growth often lagged behind the growth in the labor force, leading to concerns about jobless growth. This statement is correct.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-indian-economy-after-the-1991-economic-liberaliz\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to the Indian economy after the 1991 economic liberaliz"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91767"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91767\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}