With reference to the Indian economy after the 1991 economic liberaliz

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?1. 1 and 2 only2. 3 and 4 only3. 3 only4. 1, 2 and 4 only

Answer» Correct Answer - Option 2 : 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):

Hence 3 is correct.
Also, the growth rate of rural employment decreased (becoming negative in 2005-12). Hence 4 is correct.